Juniper Corporation makes three models of insulated thermos. Juniper has $304,000 in total revenue and total variable costs of $176,320. Its sales mix is given below: Percentage of Total Sales Thermos A 20% Thermos B 50 Thermos C 30 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 $304,000. Required: Calculate the new weighted-average contribution margin ratio. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $59,400. Determine the total sales revenue that Juniper must generate to earn a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400. Determine the sales revenue from each product needed to generate a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400.
Juniper Corporation makes three models of insulated thermos. Juniper has $304,000 in total revenue and total variable costs of $176,320. Its sales mix is given below: Percentage of Total Sales Thermos A 20% Thermos B 50 Thermos C 30 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 $304,000. Required: Calculate the new weighted-average contribution margin ratio. Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $59,400. Determine the total sales revenue that Juniper must generate to earn a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400. Determine the sales revenue from each product needed to generate a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Juniper Corporation makes three models of insulated thermos. Juniper has $304,000 in total revenue and total variable costs of $176,320. Its sales mix is given below:
Percentage of Total Sales
Thermos A 20%
Thermos B 50
Thermos C 30
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 $304,000.
Required:
Calculate the new weighted-average contribution margin ratio.
Determine total sales that Juniper needs to break even if fixed costs after the manufacturing improvements are $59,400.
Determine the total sales revenue that Juniper must generate to earn a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400.
Determine the sales revenue from each product needed to generate a profit of $117,210. Assume fixed costs after the manufacturing improvements are $59,400.
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