Final answer:
The operating income of Jeffries Corporation is calculated by determining the contribution margin for each product and then finding the contribution margin for the sales mix. After applying the mix to the total units sold, the total contribution margin is reduced by fixed costs to find the operating income, which is $21,000.
Step-by-step explanation:
To calculate the operating income of Jeffries Corporation, given the sales mix of three units of Product A for every one unit of Product B, we first need to determine the contribution margin per unit for each product. The contribution margin is found by subtracting the variable cost from the revenue. For Product A, the contribution margin is $18 - $13 = $5 per unit. For Product B, the contribution margin is $24 - $19 = $5 per unit as well.
Since the total sales are 33,600 units with a sales mix of 3:1, we can calculate that Product A's sales are 3/4 of the total and Product B's sales are 1/4 of the total. Therefore, Product A sells 25,200 units (33,600 units * 3/4), and Product B sells 8,400 units (33,600 units * 1/4).
The total contribution margin is then the sum of the contribution margins of both products multiplied by their respective quantities. So for Product A, it's 25,200 units * $5/unit = $126,000, and for Product B, it's 8,400 units * $5/unit = $42,000. Adding these together gives us the total contribution margin of $168,000. To find the operating income, we subtract the total fixed costs from the total contribution margin: $168,000 - $147,000 = $21,000.
Therefore, the operating income of Jeffries Corporation, assuming a sales mix of three units of Product A and one unit of Product B, is $21,000.