Juniper Corp. makes three models of insulated thermos. Juniper has $319,000 in t

Question

Juniper Corp. makes three models of insulated thermos. Juniper has $319,000 in total revenue and total variable costs of $197,780. Its sales mix is given below: Thermos A Thermos B Thermos C Percentage of total sales 30% 43 27 Required: 1. 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 $73,530. (Round your answer to the nearest whole number.) Break-Even Point 3. Determine the total sales revenue needed to generate a profit of $84,740. (Round your answer to the nearest whole number.) Target Sales 4. Determine the sales revenue from each product needed to generate a profit of $84,740. (Round your answers to the nearest whole number.) Thermos A Thermos B Thermos C

Explanation / Answer

1 Weighted average CM ratio=(319000-197780)/319000= 38% 2 Break-even point=73530/38%= $193500 3 Target sales=(73530+84740)/38%= $416500 4 Thermos A 124950 =416500*30% Thermos B 179095 =416500*43% Thermos C 112455 =416500*27%

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