Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

14th Edition

1292209178, 9781292209173

More Books

Students also viewed these Accounting questions

Question

=+interactive online components, out-of-home messages, print ads,

Answered: 1 week ago

Question

=+Why does the brand want to advertise?

Answered: 1 week ago

Question

=+12. Did your concept illustrate the brand's personality?

Answered: 1 week ago