Question
CH1CH2CH3CH4CH5CH6CH7CH8CH9CH10CH11CH12CH13CH14CH15CH16CH17CH18CH19CH20CH21CH22CH23 1Q2Q3Q4Q5Q6Q7Q8Q9Q10Q11Q12Q13Q14Q15Q16E17E18E19E20E21E22E23E24E25E26E27E28E29E30E31E32E33P34P35P36P37P38P39P40P41P42P43P44P45P46P47P48P49P Sales mix, three products. The Ronowski Company has three product lines of beltsA, B, and C with contribution margins of $3, $2, and
CH1CH2CH3CH4CH5CH6CH7CH8CH9CH10CH11CH12CH13CH14CH15CH16CH17CH18CH19CH20CH21CH22CH23 1Q2Q3Q4Q5Q6Q7Q8Q9Q10Q11Q12Q13Q14Q15Q16E17E18E19E20E21E22E23E24E25E26E27E28E29E30E31E32E33P34P35P36P37P38P39P40P41P42P43P44P45P46P47P48P49P Sales mix, three products. The Ronowski Company has three product lines of beltsA, B, and C with contribution margins of $3, $2, and $1, respectively. The president 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 companys fixed costs for the period are $255,000. 1. What is the companys 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 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period?
Sales mix, three products. The Ronowski Company has three product lines of beltsA, B, and C with contribution margins of $3, $2, and $1, respectively. The president 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 companys fixed costs for the period are $255,000. 1. What is the companys 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 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started