Essay
Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent budget:
Total fixed costs are anticipated to be $2,450,000.
A. Determine Shotz's sales mix.
B. Determine the weighted-average contribution margin.
C. Calculate the number of units of J, K, and L that must be sold to break even.
D. If Shotz desires to increase company profitability, should it attempt to increase or decrease the sales of product K relative to those of J and L? Briefly explain.
Correct Answer:
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A. Sales mix: 40,000 + 130,000 + 30,000 ...View Answer
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