Question
There are numbers that go where the bold blank text are The Janowski Company has three product lines of beer mugsA, B, and Cwith
There are numbers that go where the "bold blank text are"
The Janowski Company has three product lines of beer mugsA, B, and Cwith contribution margins of $6, $5, and $3, respectively. The president foresees sales of 182,000 units in the coming period, consisting of 26,000 units of A, 104,000 units of B, and 52,000 units of C. The company's fixed costs for the period are $448,000.
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, | BLANK | units of Product B, and | BLANK | 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.
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| Fixed costs | Contribution margin per bundle | = | Breakeven point in bundles |
|
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| $ Blank | Blank | = | Blank |
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| The breakeven point is | Blank | units of Product A, | Blank | units of Product B, and | |
| Blank | units of Product C. | ||||
Requirement 2. If the sales mix is maintained, what is the total contribution margin when 182,000 units are sold? What is the operating income?
Requirement 3. What would the operating income be if the company sold 26,000 units of A, 52,000 units of B, and 104,000 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.
What is the new breakeven point in units if these relationships persist in the next period?
| The breakeven point of the bundle is | Blank | bundles. |
| The breakeven point is | Blank | units of Product A, | Blank | units of Product B, and | |
| Blank | units of Product C. | ||||
Requirement 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.
Product A Product B Product C Total Units sold Contribution margin Fixed costs Operating income Product A Product B Product C Total Units sold Contribution margin Fixed costs Operating incomeStep by Step Solution
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
