Learning Activity 5.4: Sales Mix ExerciseIntroduction and Purpose of AssignmentMost companies do not...

Question

Learning Activity 5.4: Sales Mix Exercise
Introduction and Purpose of Assignment
Most companies do not produce one product. The sales mix represents the percentage of each product in relationship to total company sales. In this assignment you will calculate the contribution of individual products and use that information to make a production recommendation.
Objectives
· Integrate the managerial accounting concepts with marketing concepts regarding pricing. (5.3)
Theory and Context
Evaluating individual products and their percentage of the sales mix is important to determine, as not all products will have the same profitability. Knowing the profitability of individual products can help a company with production decisions, but it is only part of the equation. A company will need to consider equipment usage and market demands as part of the final determination of sales mix.
Resources
Sales Mix.xlsx located in the Course Documents in e360.
Kristin Ingram. (2012, October 22). Multiple product
eakeven point (weighted
average) [Video File]. https:
www.youtube.com/watch?v=g2WqRiI4zEI
Instructions
Complete the Sales Mix spreadsheet

acc6010-wk5-sales-mix-b5v1afgi.xlsx sales-mix-exercise-instructions-rjwbaur5.docx

Kiran · Accepted Answer

Sales Mix
		Variable Direct Costs	Machine Hours	Fixed Production Costs	Fixed Overhead Costs	Units Sold	Unit Selling price	Machine Hours per Unit	Total Sales Dollars	Variable Cost per Unit	Total Contribution Dollars 	Contribution  Dollars per Unit	Contribution Margin Percentage
	Item #1	$65,000	10000	$25,000	$2,000	22500	$10	0.4444444444	$225,000	$2.89	$160,000	$7.11	71.11%
	Item #2	$55,

Learning Activity 5.4: Sales Mix Exercise Introduction and Purpose of Assignment Most companies do not produce one product. The sales mix represents the percentage of each product in relationship to...

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