Sales mix, three products. 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. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?
If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?
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?

1. 13,236 units

2. $85,000

3. $65,000

4. 15,938 units

Explanation:

First Determine the ratio of the sales mix as follows :

Ratio = 20,000 : 100,000 : 80,000

Reduced to lowest term  = 1 : 5 : 4

Then find the Company`s break-even point using the sales mix as follows ;

Break-even point (units) = Fixed Costs ÷ Contribution Margin as per sales mix

                                        = $255,000 ÷ ($3 × 1 + $2 × 5 + $1 × 4)

                                        = $255,000 ÷ $17

                                        = 13,235.29 or 13,236 units

Calculation of Operating Income assuming 200,000 units are sold

Contribution :

A : (1/10 × 200,000 units) × $3     =   $60,000

B : (5/10 × 200,000 units) × $2    = $200,000

C : (4/10 × 200,000 units) × $1     =   $80,000

Total Contribution                           $340,000          

Less Fixed Cost                             ($255,000)

Operating Income                             $85,000

Calculation of Operating Income if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold.

Contribution :

A : 20,000 units × $3      =  $60,000

B : 80,000 units × $2      = $160,000

C : 100,000 units × $1     = $100,000

Total Contribution             $320,000          

Less Fixed Cost                ($255,000)

Operating Income               $65,000

Determination of New Sales Mix :

Ratio = 20,000 : 80,000 : 100,000

Reduced to Lowest Term = 1 : 4 : 5

Break-even point (units) = Fixed Costs ÷ Contribution Margin as per sales mix

                                        = $255,000 ÷ ($3 × 1 + $2 × 4 + $1 × 5)

                                        = $255,000 ÷ $16

                                        = 15,937.5 or 15,938 units

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

answer///the madrid protocol;