Question

Please help me solve requirement 2! It is telling me my units sold number is wrong but not sure if that’s it. Thank you!

The Janows Company has three product lines of beer mug A, B, and with contribution margins of $4.53, and $2.respectively. The president foresees sales of 192,000 units in the coming period, consisting of 32,000 units of A, 96,000 units of B, and 64,000 units of C. The company's fixed costs for the period are $308,000. 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, 3 units of Product B, and 2 units of Product Care 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 Contribution margin per bundle Breakeven point in bundles 306,000 18.000 The breakeven point is 18,000 units of Product A 5 4,000 units of Product B, and 30,000 units of Product C Requirement 2. the sales mix is maintained, what is the total contribution margin when 192.000 units are sold? What is the operating income? Product A Product Product C Total 27420 54857 Units sold 128.00 288.000 128.000 4400 Contribution margin (300.000) Fixed costs 238.000 Operating income 62206 1 Requirements 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. the sales mi is maintained, what is the total contribution margin when 192.000 units are sold? What is the operating income? What would operating income be the company sold 32.000 units of A 64.000 units of B. and 10.000 units of C? What is the new breakeven point in units if these relationships persist in the next period? Comparing the breakeven points in requirements 1 and 3. Is it always better for a company to choose the sales that yields the lower breakeven point? Explain Enter annel A parts

Answer 1

Answer to Requirement 2 as demanded by the student:

	Product A	Product B	Product C	Total
Units sold	32000	96000	64000	192000
Contribution margin per unit	$4	$3	$2
Contribution margin	$128000	$288000	$128000	$544000
Less: Fixed Costs				($306000)
Operating income				$238000

If the same sales proportion is maintained & same number of units are sold, sale in units of product A, product B & Product C will be same. Accordingly calculations are made.