Rawlings Company prepared the following budget information for the coming year:

The budget assumes the sale of 20,000 units of A, 100,000 units of B, and 80,000 units of C.

Required:

a) What is the company's break-even point given the sales mix above?
b) If the budgeted sales mix is maintained, what is the total contribution margin and operating income if 300,000 units are sold?

Question

Rawlings Company prepared the following budget information for the coming year:

The budget assumes the sale of 20,000 units of A, 100,000 units of B, and 80,000 units of C.

Required:

a) What is the company's break-even point given the sales mix above?
b) If the budgeted sales mix is maintained, what is the total contribution margin and operating income if 300,000 units are sold?

Quizplus · Accepted Answer

The Answer of Rawlings Company prepared the following budget information for the coming year:

The budget assumes the sale of 20,000 units of A, 100,000 units of B, and 80,000 units of C.

Required:

a) What is the company's break-even point given the sales mix above?
b) If the budgeted sales mix is maintained, what is the total contribution margin and operating income if 300,000 units are sold?

Rawlings Company Prepared the Following Budget Information for the Coming