Most businesses sell several products at varying prices. The products often have different unit varlable costs. Thus, the total profit and

the breakeven point depend on the proportions in which the products are sold. Sales mIx Is the relative contribution of sales among

varlous products sold by a firm. Assume that the sales of Jordan Incorporated for a typlcal year are as follows:

Assume the following unit selling prices and unit varlable costs:

Fixed costs are $$404,000$ per year. Assume that the sales mlx$,$ expressed in terms of relatlve physical units sold, is constant as sales

volume changes.

Requlred:

Determine the breakeven point in total units and, for this breakeven point, calculate the number of units of A and $B$ that must be

sold. Use the welghted$-$average contribution margin approach.

Determine the overall breakeven point In terms of sales dollars based on the weighted$-$average contribution margin ratio $($CMR$).$

$($Hint: The weights for calculating the weighted$-$average CMR are based on relative sales dollars, not units, of the two products.$)$ Break

down the total sales dollars breakeven point into sales dollars for product A and sales dollars for product B$.$

Assume the original facts except that now fixed costs are expected to be $$40,400$ higher than originally planned. How does this

expected increase in fixed costs affect the breakeven point in units? How does the percentage change in the breakeven point

compare to the percentage increase in fixed costs?

Complete this question by entering your answers in the tabs below.

Assume the original facts except that now fixed costs are expected to be $$40,400$ higher than originally planned. How does

this expected increase in fixed costs affect the breakeven point in units? How does the percentage change in the breakeven

point compare to the percentage increase in fixed costs?