Class: INTRO TO MNGRL ACCTG

The Pawlak Company has three product lines of belts-A, B, and C-with contribution margins of $6,$4, and $2, respectively. The president foresees sales of 240,000 units in the coming period, consisting of 24,000 units of A,120,000 units of B, and 96,000 units of C. The company's fixed costs for the period are $612,000. Read the Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of A, units of B are sold, and units of C are sold. Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to calculate the breakeven point in bundles. The breakeven point is units of A, units of B, and C. Requirement 2. If the sales mix is maintained, what is the total contribution margin when 240,000 units are sold? What is the operating income? Requirements 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 240,000 units are sold? What is the operating income? 3. What would operating income be if 24,000 units of A,96,000 units of B, and 120,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period