The Janny 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 of210,000 units in the coming period, consisting of 30,000 units of A, 120,000 units of B, and 60,000 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.units of Product B, andunits of Product C are sold.For every 1 unit of Product A, 7revelRequirements1. What is the company's breakeven point in units, assuming that the givensales mix is maintained?2.If the sales mix is maintained, what is the total contribution margin when210,000 units are sold? What is the operating income?3.What would operating income be if the company sold 30,000 units of A,60,000 units of B, and 120,000 units of C? What is the new breakeven pointin units if these relationships persist in the next period?4. Comparing the breakeven points in requirements 1 and 3, is it always betterfor a company to choose the sales mix that yields the lower breakeven point?Explain.d?

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The Janny 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 210,000 units in the coming period, consisting of 30,000 units of A, 120,000 units of B, and 60,000 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, units of Product B, and units of Product C are sold.

The Janny 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 210,000 units in the coming period, consisting of 30,000 units of A, 120,000 units of B, and 60,000 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, units of Product B, and units of Product C are sold.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Janny 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
210,000 units in the coming period, consisting of 30,000 units of A, 120,000 units of B, and 60,000 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.
units of Product B, and
units of Product C are sold.
For every 1 unit of Product A,

7
re
vel
Requirements
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
210,000 units are sold? What is the operating income?
3.
What would operating income be if the company sold 30,000 units of A,
60,000 units of B, and 120,000 units of C? What is the new breakeven point
in units if these relationships persist in the next period?
4. Comparing the breakeven points in requirements 1 and 3, is it always better
for a company to choose the sales mix that yields the lower breakeven point?
Explain.
d?

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