Review the definition of brave point Recall that the combined unit contribution margin is given by (Basic unit contribution margin) x (Basie percent of sales mix)] + [Deluxeunt contribution margin) x (Deluxe percent of sales mix}]Since these percents must add up to 100%, we have the following: (Basic percent of sales mix) (Deluxe percent of sales mix) - 100%, so that (Deluxe percent of sales mix) - 100% (tlasic percent of sales mix) Target Profit Refer again to the income statements for Cover-to-Cover Company and les company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1)-(3) that follow, asuming that wil data for the coming year is the same as the current year except for the amount of 1. 1 Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 306,000 X 2.11 bis Company wants to increase its profk by $20,000 in the coming year, what must the amount of sales be? 374,833 X 3. What would explain the diference between your answers tor(t) and (2) 2. Obles Corrgany has a higher contribution margin rate, and so more of each cow is able to cover towed costs and provide operating com b. Cover -- Cover Company's contribution margin rate is lower meaning that's more contents operation c. The companies have goals that are not in the range d. The swers are not offerent accompany has the same rouredes neunt for the coming year to achieve the desired target Review the definition of brave point Recall that the combined unit contribution margin is given by (Basic unit contribution margin) x (Basie percent of sales mix)] + [Deluxeunt contribution margin) x (Deluxe percent of sales mix}]Since these percents must add up to 100%, we have the following: (Basic percent of sales mix) (Deluxe percent of sales mix) - 100%, so that (Deluxe percent of sales mix) - 100% (tlasic percent of sales mix) Target Profit Refer again to the income statements for Cover-to-Cover Company and les company on their respective Income Statement. Note that both companies have the same sales and net income. Answer questions (1)-(3) that follow, asuming that wil data for the coming year is the same as the current year except for the amount of 1. 1 Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 306,000 X 2.11 bis Company wants to increase its profk by $20,000 in the coming year, what must the amount of sales be? 374,833 X 3. What would explain the diference between your answers tor(t) and (2) 2. Obles Corrgany has a higher contribution margin rate, and so more of each cow is able to cover towed costs and provide operating com b. Cover -- Cover Company's contribution margin rate is lower meaning that's more contents operation c. The companies have goals that are not in the range d. The swers are not offerent accompany has the same rouredes neunt for the coming year to achieve the desired target
