Reference no: EM13536733
Must show formula work, excell if possible as well
A company has three product lines of belts—A, B, and C—having a contribution margin of $3,$2, and 1$ respectively. The president forsees 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$
a) What is the company’s breakeven point in units, assuming that the given sales mix maintained?
b) If the mix is maintained, what is the total contribution margin when 200,000 units are sold? What is operating income?
c) What would be operating income 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?
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