Question
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%)).
|
- 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.)
|
- 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.)
|
- 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.)
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