Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solution from 1-4 please 3-33 Sales mix, three products. The Belkin Company has three product lines of coffee mugs - A, B, and C-with contribution

solution from 1-4 please
image text in transcribed
3-33 Sales mix, three products. The Belkin Company has three product lines of coffee mugs - A, B, and C-with contribution margins of $7,$5, and $4, respectively. The president foresees sales of 240,000 units in the coming period, consisting of 40,000 units of A,120,000 units of B, and 80,000 units of C. The company's fixed costs for the period are $552,000. 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 220,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 40,000 units of A,100,000 units of B, and 100,000 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions