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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:
- Determine Jasper's weighted average contribution margin and weighted average contribution margin ratio.
- Calculate Jasper's BEP in units and sales dollars
- Calculate the number of units of each product that will be sold at break even.
- Calculate the total sales necessary for Jasper to earn a profit of $126,400.
- Calculate the sales revenue generated from each product line if Jasper earns it target profit of $126,400.
- 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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