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Question Two The Ronowski Company has three product lines of belts A, B and...

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Accounting

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Question Two The Ronowski Company has three product lines of belts A, B and C with contribution margins of $3, $2, and 51, respectively. The CEO 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. The company is subject to 25% tax rate. E. Assuming the original sales mix of 20,000 units of A, 100,000 units of B, and 80,000 units of C, how many units of each product would need to be sold to achieve a target profit of $150,000? In a strategy meeting of Ronowski Company, the CEO said, "If we raise the price of our product, the company's breakeyen point will be lower.\" The CFO responded by saying "Then we should raise our prices. The company will be less likely to make a loss.\" Do you agree with the CEO? Explain why. Do you agree with the CFO? Explain why

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