The Jenkins Company has three product lines of beltslong dashA, B, and C with contribution margins of $5, $4, and $3 respectively. The president foresees sales of 238,000 units in the coming period, consisting of 34,000 units of A, 136,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $432,000.

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 ---, units of Product B ---, and ---units of Product C are 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 breakeven point. 2. If the sales mix is maintained, what is the total contribution margin when 238,000 units are sold? What is the operating income? (Find and show units sold and contribution margin of each product, fixed cost and Operating income)

3. What would operating income be if the company sold 34,000 units of A, 68,000 units of B, and 136,000 units of C? What is the new breakeven point in units if these relationships persist in the nextperiod? Begin by calculating the operating income. (Find and show units sold and contribution margin of each product, fixed cost and Operating income). What is the new breakeven point in units if these relationships persist in the next period? The breakeven point of the bundle is -- bundles. The breakeven point is -- units of Product A, --units of product B and -- units of Product C.

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.)

A) 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.

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) 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.

D) 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.