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Juniper Corp. makes three models of insulated thermos. Juniper has $318,000 in total revenue and total variable costs of $190,800. Its sales mix is given

Juniper Corp. makes three models of insulated thermos. Juniper has $318,000 in total revenue and total variable costs of $190,800. Its sales mix is given below:

Percentage of total sales
Thermos A 20 %
Thermos B 50
Thermos C 30

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 $318,000.

Required:

1. Calculate the new weighted-average contribution margin ratio.

2. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $61,800.

3. Determine the total sales revenue that Juniper must generate to earn a profit of $102,800.

4. Determine the sales revenue from each product needed to generate a profit of $102,800.

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Calculate the new weighted-average contribution margin ratio. (Round your answer to 2 decimals (i.e. .1234 should be entered as 12.34%)).

Weighted Average CM Ratio %

  • Required 2
  • Required 3
  • Required 4

Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $61,800. (Round Weighted Average CM Ratio to 2 decimal places.)

Break-Even Point

  • Required 3
  • Required 4

Determine the total sales revenue that Juniper must generate to earn a profit of $102,800. (Round Weighted Average CM Ratio to 2 decimal places.)

Target Sales

  • Required 4

Determine the sales revenue from each product needed to generate a profit of $102,800. (Round Weighted Average CM Ratio to 2 decimal places.)

Thermos A
Thermos B
Thermos C

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