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number 3 and 4 pls The Jillian Company has three product lines of beer mugs-A B, and c-with contribution margins of $5, 5A, and $3,
number 3 and 4 pls
The Jillian Company has three product lines of beer mugs-A B, and c-with contribution margins of $5, 5A, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25.000 units of A, 100,000 units of B, and 50,000 units of C. The company's fixed costs for the period are 8432,000 Read the requirements Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix to maintained? Begin by determining the sales mix For every 1 unit of Product A 4 units of Product B, and 2 units of Product Care sold Determine the formula used to calculate the breakeven point of the bundle when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point in bundles Fixed costs Contribution margin per bundle Broakoven point in bundles 432.000 27 16,000 The breakeven point is 16,000 units of Product 64.000 units of Product B, and 32,000 units of Product C Requirement 2. If the sales mix is maintained, what is the total contribution margin when 175,000 units are sold? What is the operating income? Product A Product B Product C Total 25,000 100,000 Units sold 50 000 S 125,000 $ 400,000 $ 150.000 Contribution margin 675,000 432,000 Fixed costs Requirement 3. What would operating income be if the company sold 25,000 units of A, 50,000 units of B, and 100,000 units of C? What is the new breakever in units if these relationships persist in the next period? Begin by calculating the operating income Product A Units sold Product B Product C Total Contribution margin Fixed costs Operating income 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. If the sales mix is maintained, what is the total contribution margin when 175,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 25,000 units of A, 50,000 units of B, and 100,000 units of C? What is the new breakeven point in units if these relationships persist in the next period? 4. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain Step by Step Solution
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