Business, 13.03.2020 21:54 yatish

The Janowski Company has three product lines of mugs—A, B, and C— with contributionmargins of $5, $4, and $3, respectively. The president foresees sales of 168,000 units in the

coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C. Thecompany’s fixed costs for the period are $405,000. Required:
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 168,000 units aresold? What is the operating income? 3. What would operating income be if the company sold 24,000 units of A, 48,000 units of B, and 96,000 units of C? What is the new breakeven point in units if these relationships persistin the next period? 4. Comparing the breakeven points in requirements 1 and 3, is it always better for a company tochoose the sales mix that yields the lower breakeven point? Explain.

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The Janowski Company has three product lines of mugs—A, B, and C— with contributionmargins of $5, $4...

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