Question
The JanowskiJanowski Company has three product lines of beltslong dashA, B, and Clong dashwith contribution margins of $ 4$4, $ 3$3, and $ 2$2, respectively.
The
JanowskiJanowski
Company has three product lines of
beltslong dashA,
B, and
Clong dashwith
contribution margins of
$ 4$4,
$ 3$3,
and
$ 2$2,
respectively. The president foresees sales of
240 comma 000240,000
units in the coming period, consisting of
30 comma 00030,000
units of A,
150 comma 000150,000
units of B, and
60 comma 00060,000
units of C. The company's fixed costs for the period are
$ 322 comma 000$322,000.
Read the requirements
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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 every 1 unit of A,
5
units of B are sold, and
2
units of C are sold.
Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to calculate the breakeven point in bundles.
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