Sales mix, three products. The Ronowski Company has three product lines of belts A, B, and

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Sales mix, three products. The Ronowski Company has three product lines of belts — A, B, and C — having contribution margins of S3, S2, and SI, respectivelv. The president foresees sale? of 200,000 units in the coming period, consisting of 20,000 A, 100,000 B, and 80,000 C Tl ?mpanvs fixed costs for the period are 5255,000.

Required ; is the companv breakeven point in units, assuming that the given sales mix irained?

2. If the mix is maintained, what is the total contribution margin when 200,000 units -old!*

What is operating income?

at would operating income become if 20,000 units of A, 80,0 J units oi P an 100,000 units of C were sold? What is the new breakeven point in units : hese relation- ps persist in the next period?

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Cost Accounting A Managerial Emphasis

ISBN: 9780131810662

8th Edition

Authors: Charles T. Horngren, George Foster, Srikant M. Datar

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