1 answer

Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to...

Question:

Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Ba
Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Sales Price Variable Cost Bookshelf per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $323,400. Recall that the totals of all the sales mix percents must be 100%, Determine the amounts to complete the following table. Type of Percent of Break-Even Sales Break-Even Sales Bookshelf Sales Mix in Units in Dollars Basic 9 Deluxe Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales, 1. If Cover-to-Cover Company wants to increase its profit by $30,000 in the coming year, what must their amount of sales be? 2. If Biblio Files Company wants to increase its profit by $30,000 in the coming year, what must their amount of sales be?

Answers

→ Ansa) Sales Mix Given. Biblio files Company Types of sales Price Bookshelf Per Unit Basic $5.00 Variable Cost Per Unit (2)- = $ Х C 1.41 o.gy Х 1.50 i.es 60 % Y У. 40 % X Х 60% and y=40% or Basic 60% Deluxe 40% Then. Biblio files Company Basic DelBreak even sales in Units 84,000 UW 56,000. 140,000.</p><p>World H=(E)x[GX4 Unite Break - Even Sales in Dollars $ 420,000 $504,000Per Unit Margin is Given in the . Cover Question on.covers to Contribution not mentioned in the Questions Dalore. On the basiNote Not Mention in Question, Biblio filio Company Cover-tor Cover Unite sold Net saler sell Price Per Unit contribution Marg

Note : - Target Profit problem is not calculated, because Income Statement of Both Companies Cover to Cover and Biblio Company is not Given is not given in the Question. Therefore, the data of calculation of sales amount in the coming year is not calculated.

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