Reference no: EM132218492
Question: The Pramedia Company has three product lines of books- A, B, and C- with contribution margino $10, S8, and $4, respectively. The president foresees sales of 175,000 units in the comin consisting of 25,000 units of A, 100,000 units of B, 50,000 units of C. The company's fixed costs firea Periog the period are $600,000.
1. What is the company's breakeven point in units, assuming that the given sales mix is maintained?
2. If the sales mix is maintained, what is the total contribution margin when 175,000 units are sold? What is the operating income?
3. What would operating income be if the company sold 100,000 units of A, 50,000 units of B, and 25,000 units of C? What is the new breakeven points in units if these relationships persist in the next period?
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