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 units in 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. Q.If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
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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 units in 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.

Q.If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income? 

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