Refer to the information in E6-18 for Mojo Corp. Suppose Mojo has improved its manufacturing process and expects total variable costs to decrease by 20 percent. The company expects sales revenue to remain stable at $300,000.

Required:

1. Calculate the new weighted average contribution margin ratio.

2. Determine total sales that Mojo needs to break even if fixed costs after the manufacturing improvements are $55,600.

3. Determine the total sales revenue that Mojo must generate to earn a profit of $90,000.

4. Determine the sales revenue from each product needed to generate a profit of $90,000.

Data from E6-18

Mojo Corp. makes three models of insulated thermos. Mojo has \($300,000\) in total revenue and \($180,000\) total variable costs. Its sales mix is given below:

Transcribed Image Text:

Thermos A Thermos B Thermos C Percentage of Total Sales 35% 45 20