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please help me with all the requirements he Johnston Company has three product lines of beer mugs- A,B, and C-with contribution margins of $4,$3, and
please help me with all the requirements
he Johnston Company has three product lines of beer mugs- A,B, and C-with contribution margins of $4,$3, and $2, respectively. The president foresees sales of 206,000 units in the caming enod, consisting of 38,000 units of A, 152,000 units of B, and 76,000 units of C. The compary's foxed costs for the period are $414,000 Read the reguirements: For evecy 1 unit of Product A. Determine the formula used to calculate the breakeven point of the bundie when the Requirements bundies 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. If the sales mix is maintaned, what is the total contrbution margin when 260,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 38,000 units of A. 76,000 units of B, and 152,000 units of C ? What is the new benaknven point in units if these relationships persist in the next poriod? 4. Comparing the breakeven points in requirements 1 and 3 , is it always better for a company to choose the sales mi that yledds the lower breakeven point? Explain Step by Step Solution
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