Solution
David answered on
Dec 21 2021
Brief Exercise 19-7
Dilts Corporation sells three different models of mosquito “zapper.”
Model A12 sells for $57 and has variable costs of $36.
Model B22 sells for $105 and has variable costs of $78.
Model C124 sells for $412 and has variable costs of $304.
The sales mix of the three models is: A12, 60%; B22, 30%; and C124, 10%.
What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g.
15.50.)
Weighted-Average Unit Contribution Margin
$31.50
Brief Exercise 19-8
Dilts Corporation sells three different models of mosquito “zapper.” Model A12 sells for $52 and has variable
costs of $35. Model B22 sells for $101 and has variable costs of $67. Model C124 sells for $407 and has
variable costs of $292. The sales mix of the three models is: A12, 55%; B22, 30%; and C124, 15%.
If the company has fixed costs of $235,520, how many units of each model must the company sell in order
to
eak even?
A12
3,520 units
B22
1,920 units
C124
960 units
Total
6,400 units
Brief Exercise 19-9
Briggs Candle Supply makes candles. The sales mix (as a percent of total dollar sales) of its three
product lines is: birthday candles 30%, standard tapered candles 50%, and large scented
candles 20%. The contribution margin ratio of each candle type is shown below.
Candle Type
Contribution Margin Ratio
Birthday
10%
Standard tapered
20%
Large scented
40%
(a)
What is the weighted-average contribution margin ratio? (Round answer to 0 decimal places, e.g.
15%.)
Weighted-average contribution margin ratio
21 %
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Brief Exercise 19-10
Quality Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division.
The results of operations for the most recent quarter are:
Bedroom
Division
Dining Room
Division
Total
Sales
$505,500
$765,200
$1,270,700
Variable costs
247,100
448,300
695,400
Contribution margin
$258,400
$316,900
$ 575,300
(a) Determine the company’s sales mix. (Round answers to 2 decimal places, e.g. 0.15.)
Sales mix
Bedroom Division
.40
Dining Room Division
.60
(b) Determine the company’s weighted-average contribution margin ratio. (Round answers to 2
decimal places, e.g. 0.15.)
The company’s weighted-average contribution margin ratio
Exercise 19-6
Crown Turf manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution
margin per unit are as follows.
Sales Mix
Contribution
Margin per Unit
Lawnmowers
30 %
$50
Weed-trimmers
50 %
$30
Chainsaws
20 %
$65
Crown Turf has fixed costs of $7,343,540.
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Compute the number of units of each product that Crown Turf must sell in order to
eak even under this
product mix.
Lawnmowers
51,234 units
Weed-trimmers
85,390 units
Chainsaws
34,156 units
Exercise 19-11
Shore Company manufactures and sells three products. Relevant per unit data concerning each product
are given below.
Product
A
B
C
Selling price
$15
$13
$20
Variable costs and expenses
$7
$10.90
$16
Machine hours to produce
2
1
2
(a) and (b)
(1) Compute the contribution margin per unit of the limited resource (machine hours) for each
product. (Round contribution margin per unit to 2 decimal places, e.g. 1.25.)
Product A
Product B
Product C
Contribution margin per unit of limited resource
$
4.00
$
2.10
$
2.00
(2) Assuming 1,530 additional machine hours are available, which product should be
manufactured? Product A
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Exercise 19-18
Langdon Company produced 10,140 units during the past year, but only 8,750 of the units were sold. The
following additional information is also available.
Direct materials used
$107,306
Direct labor incu
ed
$29,960
Variable manufacturing overhead
$23,960
Fixed manufacturing overhead
$50,700
Fixed selling and administrative expenses
$70,040
Variable selling and administrative expenses
$8,040
There was no work in process inventory at the beginning of the year, nor did Langdon have any beginning
finished goods inventory.
(a) What would be Langdon Company’s finished goods inventory cost on December 31 under variable
costing? (Round intermediate calculations to 2 decimal...