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 unitsin 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.
1.Whatis the company's breakeven pointin units, assuming that the given sales mixis maintained?
2.If the sales mixis maintained, whatis the total contribution margin when 200,000 units are sold? What is the operating income?
3.What would operatingincome beif 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new break even point in units if these relationships persist in the next period?