< Question 1 of 11 > This test: 133 point(s) possible This question: 20 point(s) possible Submit test The Jenkins Company has three product lines of beer mugs-A, B, and C-with contribution margins of $6, $4, and $3, respectively. The president foresees sales of 204,000 units in the coming period, consisting of 34,000 units of A, 102,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $552,000. 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, 5 units of Product B, and 3 units of Product C are sold. Determine the formula used to calculate the breakeven point of the bundle when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs 552000 Contribution margin per bundle The breakeven point is units of Product A, units of Product C. Breakeven point in bundles units of Product B, and Requirement 2. If the sales mix is maintained, what is the total contribution margin when 204,000 units are sold? What is the operating income? Units sold Contribution margin Fixed costs Operating income Product A Product B Product C Total 000 units of C2 What is the new breakeven point in units if these relationships
< Question 1 of 11 > This test: 133 point(s) possible This question: 20 point(s) possible Submit test The Jenkins Company has three product lines of beer mugs-A, B, and C-with contribution margins of $6, $4, and $3, respectively. The president foresees sales of 204,000 units in the coming period, consisting of 34,000 units of A, 102,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $552,000. 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, 5 units of Product B, and 3 units of Product C are sold. Determine the formula used to calculate the breakeven point of the bundle when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs 552000 Contribution margin per bundle The breakeven point is units of Product A, units of Product C. Breakeven point in bundles units of Product B, and Requirement 2. If the sales mix is maintained, what is the total contribution margin when 204,000 units are sold? What is the operating income? Units sold Contribution margin Fixed costs Operating income Product A Product B Product C Total 000 units of C2 What is the new breakeven point in units if these relationships
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Jenkins Company has three product lines of beer mugs-A, B, and C-with contribution margins of $6, $4, and $3, respectively. The president foresees sales of 204,000 units in the
coming period, consisting of 34,000 units of A, 102,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $552,000.
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,
5 units of Product B, and
3 units of Product C are sold.
Determine the formula used to calculate the breakeven point of the bundle when there is more than one product sold. Then, enter the amounts in the formula to calculate the breakeven point in
bundles.
Fixed costs
552000
Contribution margin per bundle
The breakeven point is
units of Product A,
units of Product C.
Breakeven point in bundles
units of Product B, and
Requirement 2. If the sales mix is maintained, what is the total contribution margin when 204,000 units are sold? What is the operating income?
Units sold
Contribution margin
Fixed costs
Operating income
Product A
Product B
Product C
Total
000 units of C2 What is the new breakeven point in units if these relationships
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