The Janny Company has three product lines of beer mugsA, B, and Cwith contribution margins of $6, $5, and $3, respectively. The president foresees sales of 228,000 units in the coming period, consisting of 38,000 units of A, 114,000 units of B, and 76,000 units of C. The company's fixed costs for the period are $540,000. Read the requirements. Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? The breakeven point is units of Product A, units of Product B, and units of Product C. Requirement 2. If the sales mix is maintained, what is the total contribution margin when 228,000 units are sold? What is the operating income? and the operating income is $ when 228,000 units The total contribution margin is $ are sold and the sales mix is maintained. Requirement 3. What would operating income be if the company sold 38,000 units of A, 76,000 units of B, and 114,000 units of C? What is the new breakeven point in units if these relationships persist in the next period? Calculate the operating income, then the breakeven point for each product. The operating income would be $ if the company sold 38,000 units of A, 76,000 units of B, and 114,000 units of Product C. The breakeven point is units of Product A, units of Product B, and The Janny Company has three product lines of beer mugsA, B, and Cwith contribution margins of $6, $5, and $3, respectively. The president foresees sales of 228,000 units in the coming period, consisting of 38,000 units of A, 114,000 units of B, and 76,000 units of C. The company's fixed costs for the period are $540,000. Read the fequirements Calculate the operating income, then the breakeven point for each product. if the company sold 38,000 units of A, 76,000 units of B, and The operating income would be $ 114,000 units of Product C. The breakeven point is units of Product A, units of Product B, and units of Product C. Requirement 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. (Select the correct choice with the best explanation.) O A. No, it is not always better to choose the sales mix with the lowest breakeven point because this calculation ignores the demand for the various products. The company should look to and sell as much of each of the 3 products as it can to maximize operating income even if this means that this sales mix results in a higher breakeven point. B. Yes, it is always better to choose the sales mix with the lowest breakeven point because the lowest breakeven point will always result in a higher operating income. C. No, it is not always better to choose the sales mix with the lowest breakeven point because this calculation ignores the fixed costs. The company should consider the fixed costs in order to maximize operating income. OD. Yes, it is always better to choose the sales mix with the lowest breakeven point because the lowest breakeven point will always result in a higher contribution margin
