Question

Refer to the information in E6-20 for Juniper Corp. Suppose Juniper has improved its manufacturing process and expects total variable costs to decrease by 20 percent. The company expects sales revenue to remain stable at $300,000.
Percentage of Total Sales
Thermos A ... 35%
Thermos B ... 45
Thermos C ... 20

Required:
1. Calculate the new weighted-average contribution margin ratio.
2. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $62,400.
3. Determine the total sales revenue that Juniper must generate to earn 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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  • CreatedFebruary 27, 2015
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