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Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For
Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of Product A, units of Product B, and units of Product C are 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. The breakeven point is units of Product A, units of product B and units of Product C. What is the new breakeven point in units if these relationships persist in the next period? The breakeven point of the bundle is bundles. The breakeven point is units of Product A, units of product B and units of Product C. The company's fixed costs for the period are $450,000. Read the Requirement 2. If the sales mix is maintained, what is the total contribution margin when 210,000 units are sold? What is the operating income? \begin{tabular}{|c|c|c|c|c|} \hline & Product A & Product B & Product C & Total \\ \hline \multicolumn{5}{|l|}{ Units sold } \\ \hline \multicolumn{5}{|l|}{ Contribution margin } \\ \hline Fixed costs & & & & \\ \hline Operating income & & & & \\ \hline \end{tabular} Requirements 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 210,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 30,000 units of A, 60,000 units of B, and 120,000 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. =0
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