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Compute the budgeted operating income

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Reference no: EM133183752

Question - Revenue mix, three products - The Mendez Company has three products, tote bags H, J, and K. The president plans to sell 200,000 units during the next period, consisting of 80,000 units of H, 100,000 units of J, and 20,000 units of K. The products have unit contribution margins of $2, $3, and $6 respectively. The company's fixed costs for the period are $406,000.

Required -

1. Compute the budgeted operating income. Compute the breakeven point in units, assuming that the given revenue mix is maintained.

2. Suppose 80,000 units of HI, 80,000 units of J, and 40,000 units of K are sold. Compute the budgeted operating income. Compute the new breakeven point in units if these relationships persist in the next period.

Reference no: EM133183752

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