Safari Co Sells Two Products, Orks and Zins

question 54

Essay

Safari Co. sells two products, Orks and Zins. Last year Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are:
Calculate the following:
a. Safari Co.'s sales mix
b. Safari Co.'s weighted average unit selling price
c. Safari Co's weighted average unit contribution margin
d. Safari Co's break-even point assuming that last year's fixed costs were $160,000.

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Definitions:

Nearest Cent

Rounding a monetary amount to the closest cent, often used in financial transactions to avoid fractions of a cent.

FIFO Process Cost Method

An inventory valuation method that assumes the first items produced or acquired are the first ones sold, affecting production and inventory costs.

Equivalent Units

A concept in cost accounting to express the amount of work done on partially finished goods in terms of fully finished units.

Direct Materials

Raw materials that are directly attributable to the production of goods, forming an integral part of the finished product.