Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3-44 Sales mix, three products. The Ronowski company has three product lines of belts-a, b, and c- with contribution margins pf $3,$2,and $1, respectively. The

3-44 Sales mix, three products. The Ronowski company has three product lines of belts-a, b, and c- with contribution margins pf $3,$2,and $1, respectively. The presidnt foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company's FC is $255,000. Solve: 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 200,000 units are sold?What is the operating income? 3. What would operating income be if if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is new breakeven point in units if these relationships persist in the next period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell

9th Edition

1119754054, 9781119754053

More Books

Students also viewed these Accounting questions