Question

P3-49 (book/static) Question Help The Ronowski Company has three product lines of belts-A, B, and C-with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company's fixed costs for the period are $255,000. 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 A. 5 units of B are sold, and 4 units of C are sold. Determine the formula used to calculate the breakeven point when there is more thar 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 351000 27 140000 Requirements 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? 2. If the salos mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income? 3. What would operating income be if 20,000 units of A, 80,000 units of B. and 100,000 units of C wore sold? What is the new breakeven point in units if those relationships persist in the next period? Print Done Enter any number in the edit fields and then click Check Answer.

Answer 1

- Breaks unit Sales O caluculation of break even point Fixed Coste weighted Average - Amount of contriper even ช้า 20% weighted Averge ament to contribution per renit = ? [WACUS for a perzielt contribution =3 & B 1 a = 2 $ c =1 Total sales - 200000 so = 20000 ? B= Tooooo - 80 ooo WACPU = 8x 20000 + 2 x000DD + 1 X CODOO 200000 200000T = 8x + 2x2 5 + 1 x 4 - 3 + 10+ 4 = 17 2001 10 10. Breah Even şales = Fixed cost = WACPO - 2550000 - 255000 x 10 = 150000 units I BES= 150000 zinets

②. Total contribution = noot units too nice" = 20000 x $3+100000 xka + 80000% = 60000+ RODOVO + GOUUD 340677 I Total contribution of pogoni zenits = 34000D & caluculating operating income. Contribution - Fixed cost = operating encome for 20000 3+ 80000 $4100000 xf4.-2C5000-EDIT EBIT = 60001+ Htc ottori - 25500 LEBIT = 65000 of 1 Caluculation of weeghted average conterbution per unit os 3x 29000 +2.x 30000 x 1000rr 20010o 2007o d ovod Coorv 4 160000+ bound bacoop 2000vo gloooo Boreals even = Fized cost S WACpes rinit unit 255000 – 815- = 255000 8 5 8 BES. -- 15937560 snit?? vos an ints