# Question

Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given below:

Percentage of Total Sales

Thermos A ... 35%

Thermos B ... 45

Thermos C ... 20

Required:

1. Calculate the (overall) weighted-average contribution margin ratio.

2. Determine the total sales revenue Juniper needs to break even if fixed costs are $80,000.

3. Determine the total sales revenue needed to generate a profit of $90,000.

4. Determine the sales revenue from each product needed to generate a profit of $90,000.

Percentage of Total Sales

Thermos A ... 35%

Thermos B ... 45

Thermos C ... 20

Required:

1. Calculate the (overall) weighted-average contribution margin ratio.

2. Determine the total sales revenue Juniper needs to break even if fixed costs are $80,000.

3. Determine the total sales revenue needed to generate a profit of $90,000.

4. Determine the sales revenue from each product needed to generate a profit of $90,000.

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