Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
$\begin{array}{cc}
\text { Product A: Revenue } & \$ 16.00 \
\text { Variable Cost } & \$ 12.00 \
& \
\text { Product B: Revenue } & \$ 24.00 \
\text { Variable Cost } & \$ 16.00 \
& \
\text { Total fixed costs } & \$ 75000
\end{array}$
-What is the operating profit,assuming actual sales total 25 000 units,and the sales mix is three units of Product A and one unit of Product B?

Question

Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
 $\begin{array}{cc}
\text { Product A: Revenue } & \$ 16.00 \
\text { Variable Cost } & \$ 12.00 \
& \
\text { Product B: Revenue } & \$ 24.00 \
\text { Variable Cost } & \$ 16.00 \
& \
\text { Total fixed costs } & \$ 75000
\end{array}$
-What is the operating profit,assuming actual sales total 25 000 units,and the sales mix is three units of Product A and one unit of Product B?

Quizplus · Accepted Answer

Explanation:The contribution margin per unit is:Product A: $16.00 - $12.00 = $4.00Product B: $24.00 - $16.00 = $8.00The sales mix is three units of Product A and one unit of Product B, so the weighted average contribution margin per unit is:($4.00 x 3) + ($8.00 x 1) = $16.00The operating profit is:$16.00 x 25,000 units - $75,000 = $50,000

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following