Donald Carey has provided you with the information below regarding the 3 products sold by JC Incorporated:
	Lawn Fertilizer	Artificial grass	Weed killer
Number of units sold	4000	3500	3000
Sales Price/unit	$ 85	$ 95	$ 105
Expenses:
Direct materials	$ 65,000	$ 76,000	$ 61,280
Direct Labour	$ 45,000	$ 57,000	$ 36,500
Selling prices	$ 22,000	$ 24,800	$ 38,540
Administrative expenses	$ 72,000	$ 60,000	$ 45,000
Selling expenses are mixed costs- 50% variable and 50% fixed
Administrative expenses are fixed costs
1. Calculate the contribution margin of each product sold by JC? Under the current sales mix, how many units of each product would be required to break even?
2. What is the cost structure for the company? Explain the implication on breakeven point to Donald.
3. Under the current sales mix, how many more units of the products would have to be sold to make a profit of $100,000 after tax. Assume a 30% tax rate?