The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of...

 

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The Janobi 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 231,000 units in the coming period, consisting of 33,000 units of A, 132,000 units of B, and 66,000 units of C. The company's fixed costs for the period are $525,000. 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, 4 units of Product B, and 2 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. Fixed costs + Contribution margin per bundle = Breakeven point in bundles $ 525,000 25 = 21,000 The breakeven point is 21,000 units of Product A, 84,000 units of Product B, and 42,000 units of Product C. Requirement 2. If the sales mix is maintained, what is the total contribution margin when 231,000 units are sold? What is the operating income? Units sold Contribution margin Fixed costs Operating income Product A Product B Product C Total The Janobi 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 231,000 units in the coming period, consisting of 33,000 units of A, 132,000 units of B, and 66,000 units of C. The company's fixed costs for the period are $525,000. 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, 4 units of Product B, and 2 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. Fixed costs + Contribution margin per bundle = Breakeven point in bundles $ 525,000 25 = 21,000 The breakeven point is 21,000 units of Product A, 84,000 units of Product B, and 42,000 units of Product C. Requirement 2. If the sales mix is maintained, what is the total contribution margin when 231,000 units are sold? What is the operating income? Units sold Contribution margin Fixed costs Operating income Product A Product B Product C Total

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To calculate the total contribution margin and operating income when 231000 units are sold we need t... View the full answer