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Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given
Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given below Percentage of total sales Thermos 35% A Thermos 45 B Thermos 20 C 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 $400,000. Required: 1. Calculate the new weighted-average contribution margin ratio. Weighted Average CM Ratio % 2. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $62,400. (Round your answer to the nearest whole number.) Break-Even Point 3. Determine the total sales revenue that Juniper must generate to earn a profit of $90,000. (Round your answer to the nearest whole number.) Target Sales 4. Determine the sales revenue from each product needed to generate a profit of $90,000. (Round your intermediate calculations and final answers to the nearest whole number.) Thermos A Thermos B Thermos
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