Answered step by step
Verified Expert Solution
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:
- What is the company breakeven point in units, assuming that the gen revenue mix is maintained?
- If the mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?
- 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
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