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OntheGo,Inc.,producestwomodelsoftravelingcasesforlaptopcomputers:theProgrammerandtheExecutive.Thebagshavethefollowingcharacteri
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OntheGo,Inc.,producestwomodelsoftraveling
casesforlaptopcomputers:theProgrammerand
theExecutive.Thebagshavethefollowing
characteristics:
byAdminonFriday,February21st,2014|NoComments
BSChapter2
BSChapter3
BSChapter4.14.3
BSChapter4.4
BSChapter5.15.2
OntheGo, Inc., produces two models of traveling cases for laptop computers: the Programmer
andtheExecutive.Thebagshavethefollowingcharacteristics:
Programmer
Executive
Sellingpriceperbag
70
100
Variablecostperbag
30
40
Expectedsales(bags)peryear
CATEGORIES
8,000
12,000
BSChapter5.3
BSChapter6.16.2
BSChapter6.3
BSChapter6.4
BSChapter7
BSChapter810,13
BusinessStatistics
CAchapter1
Thetotalfixedcostsperyearforthecompanyare$819,000.
CAChapter16
Required:
CAchapter2
(a)
Whatistheanticipatedlevelofprofitsfortheexpectedsalesvolumes?(Omitthe$signin
yourresponse.)
Profit
CAChapter3
CAchapter4
CAChapter5
CAChapter7
221,0002%
CAChapter6
Assumingthattheproductmixisthesameatthebreakevenpoint,computethebreakeven
(b)
point.
CostAccounting
Breakeven
point
ITChapter1
(c)
15,7502%
units
ITChapter11
IftheproductsalesmixweretochangetonineProgrammerstylebagsforeachExecutivestyle
bag,whatwouldbethenewbreakevenvolumeforOntheGo?
Breakeven
point
19,5002%
IndividualTaxation
ITChapter3
ITChapter4
ITChapter5
ITChapter6
units
ITChapter8
Explanation:
ITChapter9
(a)
ITChapter2
Uncategorized
Programmer + Executive
8,000
$70
12,000
$100
= $ 1,760,000 PX
8,000
$30
12,000
$40
8,000
$40
12,000
$60
720,000
VX
$ 1,040,000 (PV)X
819,000
$ 221,000
F
Profit
(b)
Computetheweightedaveragecontributionmargin.
Weights:
Programmer
(8,000)(8,000+12,000)=
.40
Executive
(12,000)(8,000+12,000)=
.60
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3/1/2016
OntheGo,Inc.,producestwomodelsoftravelingcasesforlaptopcomputers:theProgrammerandtheExecutive.Thebagshavethefollowingcharacteri
WeightedaverageCM
= 0.4$40+0.6$60
= $16+$36
WeightedaverageCM
= $52
Computebreakeven:
Profit
= (PV)XF
$0
= $52X$819,000
$52X
= $819,000
= $819,000$52
= 15,750totalunits
Programmer:produce0.415,750=6,300units
Executive:produce0.615,750=9,450units
(c)Newweights:
Weights:
Programmer
.90
Executive
.10
WeightedaverageCM =
=
WeightedaverageCM =
0.9$40+0.1
$60
$36+$6
$42
Computebreakeven:
Profit
(PV)XF
$0
$42X$819,000
$42X
$819,000
$819,000$42
19,500totalunits
Programmer:produce0.919,500=17,550units
Executive:produce0.119,500=1,950units
PostedinCAChapter3,CostAccountingTags:Inc.,OntheGo,producestwomodelsoftravelingcasesforlaptop
computers:theProgrammerandtheExecutive.Thebagshavethefollowingcharacteristics:
ThreeentrepreneurswerelookingtostartanewbrewpubnearSacramento,California,called
RosevilleBrewingCompany(RBC).Brewpubsprovidetwoproductstocustomersfoodfromthe
restaurantsegmentandfreshlybrewedbeerfromthebeerproductionsegment.Bothsegmentsare
typicallyinthesamebuilding,whichallowscustomerstoseethebeerbrewingprocess.
ActionGameshasdevelopedanewcomputergamethatitplanstosellfor$32.Thevariablecosts
associatedwitheachgame(formaterials,shipping,andpackaging)amountto$7.Thefixedcosts
associatedwiththegameamountto$75,000peryear.
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OntheGo,Inc.,producestwomodelsoftravelingcasesforlaptopcomputers:theProgrammerandtheExecutive.Thebagshavethefollowingcharacteri
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