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6-3 Juniper Corp. makes three models of insulated thermos. Juniper has $306,000 in total revenue and total variable costs of $183,600. Its sales mix is
6-3
Juniper Corp. makes three models of insulated thermos. Juniper has $306,000 in total revenue and total variable costs of $183,600. Its sales mix is given below: Thermos A Thermos B Thermos c Percentage of total sales 20% 40 40 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 $306,000. Required: 1. Calculate the new weighted average contribution margin ratio. 2. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $40,000. 3. Determine the total sales revenue that Juniper must generate to earn a profit of $121,400. 4. Determine the sales revenue from each product needed to generate a profit of $121,400. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the new weighted average contribution margin ratio. (Round your answer to 2 decimals (i.e. .1234 should be entered as 12.34%). Weighted Average CM Ratio % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $40,000. (Round Weighted Average CM Ratio to 2 decimal places.) Break-Even Point Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total sales revenue that Juniper must generate to earn a profit of $121,400. (Round Weighted Average CM Ratio to 2 decimal places.) Target Sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the sales revenue from each product needed to generate a profit of $121,400. (Round Weighted Average CM Ratio to 2 decimal places.) Thermos A Thermos B Thermos CStep by Step Solution
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