The Johnston Company has three product lines of beer mugs-A, B, and C-with contribution margins of $5, $4, and $2, respectively. The president foresees sales of 266,000 units in the coming period, consisting of 38,000 units of A, 152,000 units of B, and 76,000 units of C. The company's fixed costs for the period are $420,000. 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, 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 in bundles. The breakeven point is units of Product A, units of Product C. = Breakeven point in bundles units of Product B, and Requirement 2. If the sales mix is maintained, what is the total contribution margin when 266,000 units are sold? What is the operating income? 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 266,000 units are sold? What is the operating income? 3. What would operating income be if the company sold 38,000 units of A, 76,000 units of B, and 152,000 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. Units sold Contribution margin Fixed costs Product A Product B Product C Total Operating income Requirement 3. What would operating income be if the company sold 38,000 units of A, 76,000 units of B, and 152,000 units of C? What is the new breakeven point in units if these relationships persist in the next period? Begin by calculating the operating income. Units sold Contribution margin Fixed costs Product A Product B Product C Total Print Done