E6-23 (Algo) Multiproduct CVP Analysis [LO 6-6] Juniper Corp. makes three models of insulated thermos. Juniper has $313,000 in total revenue and total variable costs of $159,630. Its sales mix is given below: Percentage of total sales Thermos A 30 % Thermos B 50 Thermos C 20 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 $313,000. 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 $60,600. 3. Determine the total sales revenue that Juniper must generate to earn a profit of $138,095. 4. Determine the sales revenue from each product needed to generate a profit of $138,095.
E6-23 (Algo) Multiproduct CVP Analysis [LO 6-6] Juniper Corp. makes three models of insulated thermos. Juniper has $313,000 in total revenue and total variable costs of $159,630. Its sales mix is given below: Percentage of total sales Thermos A 30 % Thermos B 50 Thermos C 20 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 $313,000. 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 $60,600. 3. Determine the total sales revenue that Juniper must generate to earn a profit of $138,095. 4. Determine the sales revenue from each product needed to generate a profit of $138,095.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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