John's Company owns three production lines A, B, and C, and each production line achieves a contribution margin of 5 dinars, 4 dinars, 3 dinars respectively. The sales manager expects to sell 168,000 units in the next period, distributed as follows: 24,000 units of product A, 96,000 units of product B, 48,000 units of product C. Note that the fixed costs during the period are 405,000 dinarsRequired:Calculate the break-even point in units under the multiplicity of products?If the sales mix is maintained, what is the total contribution margin when selling 168,000 units? What is the net operating profit/loss?How much would the net operating profit/loss be if the company sold 24,000 units of product A, 48,000 units of product B, 96,000 units of product C. What is the parity blister if it does?

Break Even Point Under Multiplicity of Product means the total quantity of units sold of each…

Answered: John's Company owns three production…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter20: Cost-volume-profit Analysis

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John's Company owns three production lines A, B, and C, and each production line achieves a contribution margin of 5 dinars, 4 dinars, 3 dinars respectively. The sales manager expects to sell 168,000 units in the next period, distributed as follows: 24,000 units of product A, 96,000 units of product B, 48,000 units of product C. Note that the fixed costs during the period are 405,000 dinars

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Calculate the break-even point in units under the multiplicity of products?
If the sales mix is maintained, what is the total contribution margin when selling 168,000 units? What is the net operating profit/loss?
How much would the net operating profit/loss be if the company sold 24,000 units of product A, 48,000 units of product B, 96,000 units of product C. What is the parity blister if it does?

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