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
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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 .

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education