1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. If the sales mix is maintained, what is the total contribution margin when 266,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 38,000 units of A, 76,000 units of B, and 152,000 units of C? What is the new breakeven point

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 168.

1.
What is the company's breakeven point in units, assuming that the given
sales mix is maintained?
2.
If the sales mix is maintained, what is the total contribution margin when
266,000 units are sold? What is the operating income?
3.
What would operating income be if the company sold 38,000 units of A,
76,000 units of B, and 152,000 units of C? What is the new breakeven point
in units if these relationships persist in the next period?
4. Comparing the breakeven points in requirements 1 and 3, is it always better
for a company to choose the sales mix that yields the lower breakeven point?
Explain.
Transcribed Image Text:1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. If the sales mix is maintained, what is the total contribution margin when 266,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 38,000 units of A, 76,000 units of B, and 152,000 units of C? What is the new breakeven point in units if these relationships persist in the next period? 4. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain.
The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of
266,000 units in the coming period, consisting of 38,000 units of A, 152,000 units of B, and 76,000 units of C. The company's fixed costs for the period are $324,000.
Read the requirements
CELLE
Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix.
units of Product B, and
units of Product Care sold.
For every 1 unit of Product A
Transcribed Image Text:The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 266,000 units in the coming period, consisting of 38,000 units of A, 152,000 units of B, and 76,000 units of C. The company's fixed costs for the period are $324,000. Read the requirements CELLE Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. units of Product B, and units of Product Care sold. For every 1 unit of Product A
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