Accounting CVP analysis
Eloise Corp. manufactures a line of toy dolls for sale at toy stores across the country. The company has just put together the upcoming year’s sales forecasts for the firm’s three toy dolls: Boots, Tico and Dora. The forecast is presented below:
Boots Tico Dora
Unit sales 29,000 30,000 60,000
Unit selling price $27 $33 $41
Variable manufacturing cost per unit $11 $11 $19
Variable selling cost per unit $4 $5 $7
The fixed manufacturing overhead is budgeted at 1,130,000 and the company’s fixed selling and administrative expenses are forecast to be 133,000.
Required:
answer the following questions by providing number only without any formatting to the boxes shown below (e.g. 10000 or -10000).
a. What’s weighted-average contribution margin per unit? (Do not round interim numbers and round the final value to 4 decimal places.)
b. What’s the total unit sales at the break-even point? (Do not round interim numbers and round the final value to the nearest integer)
c. What’s the unit sales of Boots at the break-even point? (Do not round interim numbers and round the final value to the nearest integer)
d. What’s the unit sales of Tico at the break-even point? (Do not round interim numbers and round the final value to the nearest integer)
e. What’s the unit sales of Dora at the break-even point? (Do not round interim numbers and round the final value to the nearest integer)
Sample Solution
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