MoJo Corp. makes three models of insulated thermos. MoJo has $304,000 in total r
ID: 2374308 • Letter: M
Question
MoJo Corp. makes three models of insulated thermos. MoJo has $304,000 in total revenue and $200,640 total variable costs. Its sales mix is given below:
Calculate the weighted average contribution margin ratio. (Omit the "%" sign in your response.)
Determine the total sales revenue MoJo needs to break even if fixed costs are $61,030. (Omit the "$" sign in your response.)
Determine the total sales revenue needed to generate a profit of $77,520. (Omit the "$" sign in your response.)
Determine the sales revenue from each product needed to generate a profit of $77,520. (Round your answers to the nearest whole number. Omit the "$" signs in your response.)
MoJo Corp. makes three models of insulated thermos. MoJo has $304,000 in total revenue and $200,640 total variable costs. Its sales mix is given below:
Explanation / Answer
1) 200640/304000 = 66%
2) Sales
= Fixed Cost/(Average CM ratio)
= 61,030 / (.66%)
= $ 92,469
3) for profit of 77,520
Gross margin = 77,520 + 61,030 = $ 138,550
Sales = 138,550 / 66% = $209,924
4)
A 27% * $209,924 = $56,679
B 40% * $209,924 = $ 83,970
C 33% * $209,924 = $ 69,275