Problem

Multiproduct CVP AnalysisMoJo Corp. makes three models of insulated thermos. MoJo has $300...

Multiproduct CVP Analysis

MoJo Corp. makes three models of insulated thermos. MoJo has $300,000 in total revenue and $180,000 total variable costs. Its sales mix is given below:

 

Percentage of Total Sales

Thermos A

35%

Thermos B

45

Thermos C

20

Required:

1.Calculate the weighted average contribution margin ratio.


2.Determine the total sales revenue MoJo needs to break even if fixed costs are $75,000.


3.Determine the total sales revenue needed to generate a profit of $90,000.


4.Determine the sales revenue from each product needed to generate a profit of $90,000.

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