Ronowski Company Sales mix: Breakeven for three products, co
Not what you're looking for?
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.
1. What is the company's breakeven point in units, assuming that the given sales mix is maintained?
2. If the sales 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 were sold? What is the new breakeven point in units if these relationships persist in the next period?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what is the company's breakeven point in units, assuming that the given sales mix is maintained.
Solution Preview
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.
1. What is the company's ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.