Tress E

Tress Enterprises manufactures shampoo and conditioner.
Last year Tress sold 120,000 bottles of product. Unit sales of
conditioner amounted to 60% of the number of units of shampoo.
This trend is expected to continue The selling price for both
products is $12.00; however, the variable cost of a unit of
shampoo is $6.00 while the variable cost of unit of conditioner is 8.00 dollars, fixed costs are expected to be $42,000.
a.Compute the number of each product sold
b.Compute the weighted-average contribution margin per unit
c.Compute the overall break-even point in units
d.Compute the unit sales of shampoo and conditioner at the
break-even point.
e.Compute the dollar sales of shampoo and conditioner at the
break-even point2.Hoctor Industries wishes to determine the profitability of its
products and asks the cost accountant to make a comparative analysis of sales, cost of sales, and distribution costs of each
product for the year. The accountant gathers the following information, which will be useful in preparing the analysis:
Standard Deluxe
Number of units sold 500,000 350,000
Number of orders received 15,000 4,000
Selling price per unit $10 $20
Cost per unit $ 4 $12Advertising expenses total $100,000, with 60% being expended
to advertise the Deluxe model.The representatives commission are 5% and 7% for the standard and delux models respectively. The sales manager's salary of $50,000 is allocated evenly between products. Other miscellaneous sellings costs are estimated to be $6 per order received.
a. Compute the selling cost per unit.
b. Prepare an analysis for Hoctor Industries that shows in
comparative form the income derived from the sale of each
unit for the year.