The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q1. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?
The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q1. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000.
Q1. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?
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