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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:
- Calculate the new weighted-average contribution margin ratio.
- Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $48,500.
- 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.
- 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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