Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Jenkins Company has three product lines of beltsA, B, and C-with contribution margins of $6, $5, and $3, respectively. The president foresees sales

image text in transcribed

The Jenkins Company has three product lines of beltsA, B, and C-with contribution margins of $6, $5, and $3, respectively. The president foresees sales of 224,000 units in the coming period, consisting of 32,000 units of A, 128,000 units of B, and 64,000 units of C. The company's fixed costs for the period are $448,000. Read the requirements. Requirer Begin by Requirements 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 224,000 units are sold? What is the operating income? - 3. What would operating income be if the company sold 32,000 units of A, 64,000 units of B, and 128,000 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. d? t C are sold.

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

Using Excel & Access for Accounting 2010

Authors: Glenn Owen

3rd edition

1111532672, 978-1111532673

More Books

Students also viewed these Accounting questions