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##### Tress E

**Description**

solution

**Question**

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.

Paper#74788 | Written in 18-Jul-2015

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