Juniper Corporation makes three models of insulated thermos. Juniper has $307,000 in total revenue and total variable costs of $202, 620. Its sales mix is given below: Percentage of Total Sales Thermos A 30% Thermos B 40 Thermos C 30 Suppose Juniper has improved its manufacturing process and expects total variable costs to decrease by 20 percent. The company expects sales revenue to remain stable at $307,000. Required: Calculate the new weighted - average contribution margin ratio. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $52,000. Determine the total sales revenue that Juniper must generate to earn a profit of $87,570. Assume fixed costs after the manufacturing improvements are $52,000 . Determine the sales revenue from each product needed to generate a profit of $87, 570. Assume fixed costs after the manufacturing improvements are $52, 000 .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Juniper Corporation makes three models of insulated thermos. Juniper has $307,000 in total revenue and total variable

costs of $202, 620. Its sales mix is given below: Percentage of Total Sales Thermos A 30% Thermos B 40 Thermos C 30

Suppose Juniper has improved its manufacturing process and expects total variable costs to decrease by 20 percent. The

company expects sales revenue to remain stable at $307,000. Required: Calculate the new weighted - average

contribution margin ratio. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing

improvements are $52,000. Determine the total sales revenue that Juniper must generate to earn a profit of $87,570.

Assume fixed costs after the manufacturing improvements are $52,000 . Determine the sales revenue from each product

needed to generate a profit of $87, 570. Assume fixed costs after the manufacturing improvements are $52, 000 .

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