Question

11 Juniper Corp. makes three models of insulated thermos. Juniper has $308.000 in total revenue and total variable costs of $206,360. Its sales mix is given below: 1.4 points Thermos A Thermos B Thermos c Percentage of total sales 34% 47 19 eBook 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 $61.215. 3. Determine the total sales revenue needed to generate a profit of $77.880. 4. Determine the sales revenue from each product needed to generate a profit of $77.880. Hint print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Calculate the overall) weighted-average contribution margin ratio. Weighted Average CM Ratio 96 < Required 1 Required 2 >

Answer 1

1. Contribution Margin

Total revenue-Total variable costs

(308000-206360)

101640

Weighted average contribution margin ratio= Contribution margin*100/Sales

(101640*100/308000)

33%

2. Break Even

Break even= Fixed cost/Weighted average contribution margin ratio

61215/33%

185500

3) Total sales revenue

(Fixed cost+Target profit)/Weighted average contribution margin ratio

(61215+77880)/33%

421500

4.

	Total sales Revenue	%	Sales revenue for each product
Thermos A	$421,500	34%	$143,310
Thermos B	$421,500	47%	$198,105
Thermos C	$421,500	19%	$80,085
			$421,500