Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. data for the next 2 questions: tamara company sell

Data for the next 2 questions: Tamara Company sells two types of control systems – Basic...

Free

80.2K

Verified Solution

Question

Accounting

Data for the next 2 questions:

Tamara Company sells two types of control systems – Basic andDeluxe - as follows:

Selling price per unit Variable expense per unit

Basic $120 $90

Deluxe $280 $220

Fixed monthly expenses total $300,000. The expected sales mix inunits is 60% for product Basic and 40% for Deluxe.

1. How many units of each product must be sold each month inorder to breakeven?

2. How many units of each product must be sold each month inorder to make $150,000 profit per month?

Answer & Explanation Solved by verified expert
3.7 Ratings (649 Votes)

Basic Deluxe
Selling price per unit 120 280
variable expense per unit 90 220
contribution margin per unit 30 60
Weighted average contribution = 30*.6+60*.4
42
1) units to be sold to breakeven = fixed cost/weighted average contribution
300,000/42
         7,143
product A (7143*60%)          4,286
product B (7143*40%)    2,857.14
2) (300,000+150,000)/42
         10,714
product A          6,428
product B          4,286

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Match the membrane transport process with its description Osmosis Simple diffusion Facilitated diffusion 1 Passive...

Basic Math
1.2K views

Use the box method to distribute and simplify 5x 3 x 6 Drag and drop...

Calculus
1.2K views

di 4 H 2 2 Give the ordered pairs in decimal form and separate with...

Calculus
1.2K views

Using a left endpoint Riemann sum approximation with four equal subintervals the approximate value of...

Algebra
1.2K views

Simplify the following product. (t^9)(t^6)Select the correct answer below:(A) t^16(B) t^15(C) t^22(D) t^17(E) t^14

Algebra
1.2K views

Graph the linear equation by the point plotting method or by finding intercepts 8y 16...

Accounting
1.2K views

Question 2: (a) A Muscat Tools company manufactures toolkits and supplies to the local and...

Accounting
1.2K views

Internal Rate of Return A project is estimated to cost $174,155 and provide annual net...

Accounting
1.2K views

Required information The following information applies to the questions displayed below. This year Randy paid...

Accounting
1.2K views

Suppose the actual budget deficit remains unchanged when the economy falls into a recession. This...

Finance
1.2K views

IncorrectQuestion 26 0 / 1 pts Which of the following would have the lowest amount...

Accounting
1.2K views

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on...