Question

Juniper Corp. makes three models of insulated thermos. Juniper has $317,000 in total revenue and total variable costs of $168,010. Its sales mix is given below:

	Percentage of total sales
Thermos A	33	%
Thermos B	40
Thermos C	27

Required:

1. Calculate the (overall) weighted-average contribution margin ratio.

2. Determine the total sales revenue Juniper needs to break even if fixed costs are $90,945.

3. Determine the total sales revenue needed to generate a profit of $101,990.

4. Determine the sales revenue from each product needed to generate a profit of $101,990.

Calculate the (overall) weighted-average contribution margin ratio.

	Weighted Average CM Ratio    %

2.

Determine the total sales revenue Juniper needs to break even if fixed costs are $90,945. (Round your answer to the nearest whole number.)

	Break-Even Point

3.

Determine the total sales revenue needed to generate a profit of $101,990. (Round your answer to the nearest whole number.)

	Target Sales

4.

Determine the sales revenue from each product needed to generate a profit of $101,990. (Round your answers to the nearest whole number.)

	Thermos A Thermos B Thermos C

This is not a incomplete question

Answer 1

1. 
   1) Contribution margin= Total revenue-Total variable costs = $317,000-168,010= $148,990 Weighted average contribution margin ratio= Contribution margin*100/Sales = $148,990*100/317,000= 47% 2) Break even= Fixed cost/Weighted average contribution margin ratio = $90945/47%= $ 193,500 3 3) Total sales revenue= (Fixed cost+Target profit)/Weighted average contribution margin ratio ($90945+101990)/47%= $410500 4) Sales Revenue of each product Particulars Total sales revenue % Thermos A $ 4,10,500 Thermos B $ 4,10,500 Thermos C $ 4,10,500 Total Sales revenue for each product 33% $ 1,35,465 40% $ 1,64,200 27% $ 1,10,835 $ 4,10,500 * Kindly Comment down for any clarifications/ queries and please upvote.