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The Jenkins Company has three product lines of beer mugsA, B, and Cwith contribution margins of $5, $4, and $2, respectively. The president foresees sales
The Jenkins Company has three product lines of beer mugsA, B, and Cwith contribution margins of $5, $4, and $2, respectively. The president foresees sales of 196,000 units in units of B, and 56,000 units of C. The company's fixed costs for the period are $525,000. Read the requirements. 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, 4 units of Product B, and 2 units of Product Care 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 breakeve Fi costs Contribution margin per bundle = Breakeven point in bundles 21,000 $ 525,000 25 = 21,000 units of Product A, 84,000 units of Product B, and The breakeven point is 42,000 units of Product C. Requirement 2. If the sales mix is maintained, what is the total contribution margin when 196,000 units are sold? What is the operating income? Product A Product B Product C Total Units sold Contribution margin Fixed costs
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