# Identify four factors that Lockhart Manufacturing might consider before selecting either the current method of production or the automated method of production.

Sales Mix; Multi­Product Break­Even Analysis
Smithen Company, a wholesale distributor, has been operating for only a few months. The company
sells three products—sinks, mirrors, and vanities. Budgeted sales by product and in total for the
coming month are shown below based on planned unit sales as follows:

d

d
d
Break­even point in unit sales:

d
As shown by these data, operating income is budgeted at \$36,400 for the month, break­even sales
dollars at \$430,000, and break­even unit sales at 1,720.
Assume that actual sales for the month total \$504,000 (2,100 units), with the CM ratio and per unit
amounts the same as budgeted. Actual fixed expenses are the same as budgeted, \$223,600. Actual
sales by product are as follows: sinks, \$126,000 (525 units); mirrors, \$210,000 (1,050 units); and
vanities, \$168,000 (525 units).
Required:
1 Prepare a contribution format income statement for the month based on actual sales data.
Present the income statement in the format shown above.
1 Compute the break­even point in sales dollars for the month, based on the actual data.
1 Calculate the break­even point in unit sales for the month, based on the actual data.
1 Considering the fact that the company exceeded its \$500,000 sales budget for the month, the
president is shocked at the results shown on your income statement in (1) above. Prepare a brief
memo for the president explaining why both the operating results and the break­even point in
sales dollars are different from what was budgeted.

Changes in Cost Structure; Break­Even Analysis; Indifference
Lockhart Manufacturing Co. is manufacturing a new product for the following costs:

d
The production manager feels that savings could be achieved by automating the plant. If the plant
was automated, the costs would change as follows:
There would be no change to any other costs or to the selling price.

d
Required
1 Calculate the break­even point in annual unit sales for the new product if Lockhart Manufacturing
uses the
a Current method of production.
a Automated method of production.
1 Calculate the annual number of unit sales at which Lockhart Manufacturing would be indifferent
about which manufacturing method is used. If demand exceeds this amount, which method of
production should be used?
1 Identify four factors that Lockhart Manufacturing might consider before selecting either the
current method of production or the automated method of production.

Pages (550 words)
Approximate price: -

Why Homework Market

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

Unlimited Revision

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Homework Market Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

## Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Essay Editing

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Research Paper

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.