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The Kowalski Company has three product lines of beltsA, B, and Cwith contribution margins of $3, $2, and $1, respectively. The president foresees sales of
The Kowalski Company has three product lines of beltsA, B, and Cwith contribution margins of $3, $2, and $1, respectively. The president foresees sales of 180,000 units in the coming period, consisting of 18,000 units of A, 90,000 units of B, and 72,000 units of C. The company's fixed costs for the period are $272,000. 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 A, units of B are sold, and units of C are sold. 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 180,000 units are sold? What is the operating income? 3. What would operating income be if 18,000 units of A, 72,000 units of B, and 90,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Click to select your
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