The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product line. (Round to the nearest whole number.) The breakeven point is 000 bundles.

The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product line. (Round to the nearest whole number.) The breakeven point is 000 bundles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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