Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CVP analysis and revenue mix. Ronowski Company has three products lines of belts, A, B, and C, with contribution margin of $3.60, $2.40, and $1.20,

CVP analysis and revenue mix. Ronowski Company has three products lines of belts, A, B, and C, with contribution margin of $3.60, $2.40, and $1.20, respectively. The president forecast 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 $306,000.

Required:

  1. What is the company breakeven point in units, assuming that the gen revenue mix is maintained?
  2. If the 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 become if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the 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

Step: 3

blur-text-image

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

College Accounting Chapters 1-12 With Study Guide And Working Papers

Authors: Jeffrey Slater

13th Edition

0133866300, 9780133866308

More Books

Students also viewed these Accounting questions

Question

Solve the each equation. tan 1 (1) = ______.

Answered: 1 week ago