The Janowo Company has three product lines of beltsA B and Cwith contribution margins of $$ and $ respectively. The president foresees sales of units in
the coming period, consisting of units of units of B and units of C The company's fixed costs for the period are $
Read the requirements.
Requirement 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 unit of
units of are sold, and
units of are sold.
Requirements
What is the company's breakeven point in units, assuming that the given
sales mix is maintained?
If the sales mix is maintained, what is the total contribution margin when
units are sold? What is the operating income?
What would operating income be if units of units of and
units of were sold? What is the new breakeven point in units if
these relationships persist in the next period?
