Question
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 A | 35 | % |
Thermos B | 45 | |
Thermos C | 20 | |
Required: | |
1. | Calculate the overall weighted-average contribution margin ratio. |
2. | Determine the total sales revenue Juniper needs to break even if fixed costs are $80,000. (Round your answer to the nearest whole number.) |
3. | Determine the total sales revenue needed to generate a profit of $90,000. (Round your answer to the nearest whole number.) |
4. | Determine the sales revenue from each product needed to generate a profit of $90,000. (Round your answers to the nearest whole number.) |
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