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Juniper Corp. makes three models of insulated thermos. Juniper has $314,000 in total revenue and total variable costs of $207,240. Its sales mix is given
Juniper Corp. makes three models of insulated thermos. Juniper has $314,000 in total revenue and total variable costs of $207,240. Its sales mix is given below:
Percentage of total sales | ||
Thermos A | 26 | % |
Thermos B | 49 | |
Thermos C | 25 | |
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 $62,730.
3. Determine the total sales revenue needed to generate a profit of $79,900.
4. Determine the sales revenue from each product needed to generate a profit of $79,900.
Weighted Average CM Ratio % Break-Even Point Target Sales Thermos A Thermos B Thermos C
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