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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 11
CVP ANALYSIS OF MULTIPLE PRODUCTS
Coale Company produces GPS devices. One model is the GPS-auto, a basic model that is designed to attach to the windshield of a car. Another model, the GPS-marine, has extensive charts of oceans around the world. For the coming year, Coale expects to sell 80,000 GPS-autos and 5,000 GPS-marines. A segmented income statement for the two products is as follows:
Required:
1. Compute the number of GPS-autos and GPS-marines that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. (Round the contribution margin ratio to five significant digits and the sales revenue to the nearest dollar.)
Coale Company produces GPS devices. One model is the GPS-auto, a basic model that is designed to attach to the windshield of a car. Another model, the GPS-marine, has extensive charts of oceans around the world. For the coming year, Coale expects to sell 80,000 GPS-autos and 5,000 GPS-marines. A segmented income statement for the two products is as follows:
Required:
1. Compute the number of GPS-autos and GPS-marines that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. (Round the contribution margin ratio to five significant digits and the sales revenue to the nearest dollar.)
Explanation
Verified
Verified
1.
Compute number of units needs to be s...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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