Question
Question Two The Ronowski Company has three product lines of belts A, B and C with contribution margins of $3, $2, and $1, respectively. The
Question Two The Ronowski Company has three product lines of belts A, B and C with contribution margins of $3, $2, and $1, respectively. The CEO foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The companys fixed costs for the period are $255,000. The company is subject to 25% tax rate.
E. Assuming the original sales mix of 20,000 units of A, 100,000 units of B, and 80,000 units of C, how many units of each product would need to be sold to achieve a target profit of $150,000?
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