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Juniper Corporation makes three models of insulated thermos. Juniper has $305,000 in total revenue and total variable costs of $176,900. Its sales mix is given

Juniper Corporation makes three models of insulated thermos. Juniper has $305,000 in total revenue and total variable costs of $176,900. Its sales mix is given below:

Percentage of Total Sales
Thermos A 30%
Thermos B 40
Thermos C 30

Suppose Juniper has improved its manufacturing process and expects total variable costs to decrease by 30 percent. The company expects sales revenue to remain stable at $305,000.

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 $48,500.
  3. Determine the total sales revenue that Juniper must generate to earn a profit of $128,530. Assume fixed costs after the manufacturing improvements are $48,500.
  4. Determine the sales revenue from each product needed to generate a profit of $128,530. Assume fixed costs after the manufacturing improvements are $48,500.

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