Question
E6-23 (Algo) Multiproduct CVP Analysis [LO 6-6] Juniper Corp. makes three models of insulated thermos. Juniper has $313,000 in total revenue and total variable costs
E6-23 (Algo) Multiproduct CVP Analysis [LO 6-6] Juniper Corp. makes three models of insulated thermos. Juniper has $313,000 in total revenue and total variable costs of $159,630. Its sales mix is given below: Percentage of total sales
Thermos A 30 %
Thermos B 50
Thermos C 20
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 $313,000.
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 $60,600.
3. Determine the total sales revenue that Juniper must generate to earn a profit of $138,095.
4. Determine the sales revenue from each product needed to generate a profit of $138,095.
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