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GT has three products that it sells: Copper, Bauxite, and Gravel. Results of the fourth quarter are presented below: copper bauxite Gravel total Tonnage sold

GT has three products that it sells: Copper, Bauxite, and Gravel. Results of the fourth quarter are presented below:

copper

bauxite

Gravel

total

Tonnage sold

10,000

20,000

20,000

revenue

22,000,000

40,000,000

23,000,000

85,000,000

Variable cost

17,000,000

22,000,000

12,000,000

51,000,000

Direct fixed costs

1,000,000

3,000,000

2,000,000

6,000,000

Allocated fixed costs

8,000,000

8,000,000

8,000,000

24,000,000

Net income

4,000,000

7,000,000

1,000,000

4,000,000

The allocated fixed costs are unavoidable. Demand of individual products is not affected by changes in other product lines.

Q. do a break-even analysis on each product to confirm the level of production needed for each product line.

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