Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

o The Jervis Company has three product lines of beer mugs-A. B. and C-with contribution margins of 54, 53 and 52, respectively. The president foresees

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
o The Jervis Company has three product lines of beer mugs-A. B. and C-with contribution margins of 54, 53 and 52, respectively. The president foresees sales of 182,000 units in the coming period, consisting of 27,000 units of A, B1,000 units of Band 54,000 units of C. The company's fixed costs for the period are $300.000 Read the requirementa Requirement 1. What is the company's breakeven point in units, assuming that the gwen sales mix is maintained? Begin by determining the sales mix For every 1 unit of Product A 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 breakuvan point in bundles Breakeven point in bundles units of Product and units of Product unts of Products, and The breakeven point is units of Product Requirement 2. If the sales mois maintained, what is the total contribution margin when 162.000 units are sold? What is the operating income? Product Products Product Total Units sold GIV W 15 G Search or type URL $ 9 0 ox 8 7 6 3 The Jervis Company has three product lines of beer muge-A B, and with contribution margins of $4, 39, and $2 respectively. The president forcon sale of 162,000 us in the coming period, consisting of 27.000 units of A 81.000 units of Band 54,000 units of C. The company's fixed costs for the period are $300.000 Read the requirements Requirement 2. It the sales mix is maintained, what is the total contribution margin when 162,000 units wo sold? What is the operating come? Product A Products Product Total Units sold Contribution margin Fixed costs Operating income Requirement 3. What would operating income be if the company sold 27.000 units of A, 54,000 units of B, and 61,000 units of C7 What is the new even point in unserem persist in the next period? Begin by calculating the operating income Product Products Product Total Units sold Contribution margi AN atv A w 15 Macbook Pro RE c G Search or type URL 0 9 8 7 6 5 3 4 0 The Jervis Company has three product lines of beer mugs-A B, and with contribution margins of $4,53, and $2.respectively. The president forces of 162.000 units in the coming period, consisting of 27,000 units of A, 81,000 units of B, and 54,000 units of C. The company's food costs for the period are $300,000 Read the requirements Begin by calculating the operating income Product A Product Product Total Units sold Contribution margin Fixed costs Operating income What is the new breakeven point in units if these relationship porsist in the next period? The breakoven point of the bundle is bundles The breakeven point is units of Product units of Product and units of Product C Requirement 4. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose them that yields the lower bakevend plan. (w the correct choice with the best explanation) A W R Search or type URL 8 9 0 8 9 $ 4 7 6 5 3 4. 5, and 12. respectively. The president for sale of 162,000 units in the coming 27,000 units of A $1,000 units of 8. and 54.000 units of C. The company's feed costs for the period are $300,000 Read the Operating income What is the new breskoven point in unit if these relationships persist in the neat period? The braven point of the bundels bundles The braven points units of Product units of Products and units of Product Requirement 4. Comparing the breakeven points in mourement 1 and is always better for a company to choose the sixth yes the lower brukervenportti (tolice correct choice with the best explanation OA Yes, it is always better to choose the sales mix with the lowest breakiven point because the lowest breakeven point will always out in a higher contribution margin OB. Yes, it is always better to choose the sales mix with the lowest breakeven point because the lowest breakeven point will always retulin a higher operating income OC. No, it is not always butter to choose the sales mix with the lowest breakiven pont because I calculation pores the food cools. The company should consider the field in onder to maine operating income OD. No. It is not always better to choose the mix with the lowest breakeven point because the calculation ignore the demand for the varios products. The company thoid look to und sell as much of each of the products as it can to mamice operating income even if this means toutes les me results in oven point Choose from any kut or enter any number in the input fold and then continue to the next question, Saw 15 G Search or type URL 9 7 0 4. 3 5 8 6 P E R T Y punod are $306,000. sds ar 162.0 nants 0 Requirements point in units if these bundle is 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 Ict C. 162,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 27,000 units of A. the breakeven points 54,000 units of B, and 81,000 units of C? What is the new breakeven point in he lower breakeven po xplanation.) units if these relationships persist in the next period? 4. Comparing the breakeven points in requirements 1 and 3, is it always better to choose the sales for a company to choose the sales mix that yields the lower breakeven point? higher contribution Explain. to choose the sales higher operating in tter to choose the sa pmpany should consis income Print Done rious products. The ter to choose the sal f the 3 products as it can to maximize operating come ever means that this ses mesures amignerteakeven point. any number in the input fields and then continue to the next question W etv A W me

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting For Undergraduates

Authors: Jason Wallace, James Nelson, Karen Christensen, Theodore Hobson, Scott L. Matthews

2nd Edition

161853310X, 9781618533104

More Books

Students also viewed these Accounting questions

Question

=+c. Savings as the Star focus on price.

Answered: 1 week ago

Question

=+b. Product-Focused emphasize product features.

Answered: 1 week ago