Hightech Company recently developed the technology necessary to produce a low-end, a medium-end, and high-end computer memory chip for heart monitoring healthcare equipment.Budgeted fixed costs for the manufacture of all three products total $4,250,000.The budgeted sales by product and in total for the coming year are as follows: Required:
1.Prepare a contribution income statement for the year based on actual sales data (but budgeted cost data, for both variable and fixed costs).
2.Compare the breakeven sales dollars for the year based on both budgeted and on actual sales, assuming that the sales mix remains constant in terms of sales dollars.(Round contribution margin ratios, in all calculations, to three decimal places.Round answer in dollars up, to the nearest whole number.)
3.The company president knows that total actual sales were $8,250,000 for the year, the same as budgeted.Because she had seen the budgeted income statement, she was expecting a nice profit from producing the memory chips.Explain to her what happened.

Question

Hightech Company recently developed the technology necessary to produce a low-end, a medium-end, and high-end computer memory chip for heart monitoring healthcare equipment.Budgeted fixed costs for the manufacture of all three products total $4,250,000.The budgeted sales by product and in total for the coming year are as follows:  Required:
1.Prepare a contribution income statement for the year based on actual sales data (but budgeted cost data, for both variable and fixed costs).
2.Compare the breakeven sales dollars for the year based on both budgeted and on actual sales, assuming that the sales mix remains constant in terms of sales dollars.(Round contribution margin ratios, in all calculations, to three decimal places.Round answer in dollars up, to the nearest whole number.)
3.The company president knows that total actual sales were $8,250,000 for the year, the same as budgeted.Because she had seen the budgeted income statement, she was expecting a nice profit from producing the memory chips.Explain to her what happened.

Quizplus · Accepted Answer

The Answer of Hightech Company recently developed the technology necessary to produce a low-end, a medium-end, and high-end computer memory chip for heart monitoring healthcare equipment.Budgeted fixed costs for the manufacture of all three products total $4,250,000.The budgeted sales by product and in total for the coming year are as follows:  Required:
1.Prepare a contribution income statement for the year based on actual sales data (but budgeted cost data, for both variable and fixed costs).
2.Compare the breakeven sales dollars for the year based on both budgeted and on actual sales, assuming that the sales mix remains constant in terms of sales dollars.(Round contribution margin ratios, in all calculations, to three decimal places.Round answer in dollars up, to the nearest whole number.)
3.The company president knows that total actual sales were $8,250,000 for the year, the same as budgeted.Because she had seen the budgeted income statement, she was expecting a nice profit from producing the memory chips.Explain to her what happened.

Hightech Company Recently Developed the Technology Necessary to Produce a Low-End