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Jasper Inc produces 2 models of picnic baskets. Basket A Basket B Sales revenue(a) $56,000 $101,400 Variable Cost(b) $27,229 $51,410 Contribution Margin(c) $28,771 $49,990 Total

Jasper Inc produces 2 models of picnic baskets.

Basket A Basket B
Sales revenue(a) $56,000 $101,400
Variable Cost(b) $27,229 $51,410
Contribution Margin(c) $28,771 $49,990
Total Units sold(d) 1,352 2,028

Jasper's fixed cost total $35,200.

Required:

  1. Determine Jasper's weighted average contribution margin and weighted average contribution margin ratio.
  2. Calculate Jasper's BEP in units and sales dollars
  3. Calculate the number of units of each product that will be sold at break even.
  4. Calculate the total sales necessary for Jasper to earn a profit of $126,400.
  5. Calculate the sales revenue generated from each product line if Jasper earns it target profit of $126,400.
  6. Assume no change in total unit sales. Without doing any calculations, what will happen to BEP in units if sales mix in units was 50/50?(increase/decrease/remain unchanged)? Explain.

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