Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products:

	Economy	Standard	Deluxe
Unit sales	10,000	6,000	4,000
Unit sales price	$50	$58	$70
Unit variable cost	$30	$32	$36

Assume that total fixed cost is $344,400.

a. Compute the net income before income tax based on the sales volumes shown above.

	Economy	Standard	Deluxe
Unit contribution margin	Answer	Answer	Answer
Total contribution margin	Answer	Answer	Answer

Net income before income tax: $Answer

b. Compute the break-even point in total dollars of revenue and in unit sales volume for each product. Enter product mix answers in decimal form.

Product	Product Mix	Contribution Margin per unit	Weighted average unit contribution margin
Economy	Answer	Answer	Answer
Standard	Answer	Answer	Answer
Deluxe	Answer	Answer	Answer
			Answer

Break-even Answer units

Product	Break -even Units	Unit Sales Price	Break-even Sales Revenue
Economy	Answer	Answer	Answer
Standard	Answer	Answer	Answer
Deluxe	Answer	Answer	Answer
			Answer

c. Prove your break-even calculations by computing the total contribution margin related to your answer in requirement (b).

Product	Break -even Units	Unit Contribution Margin	Total Contribution Margin
Economy	Answer	Answer	Answer
Standard	Answer	Answer	Answer
Deluxe	Answer	Answer	Answer
			Answer

PreviousSave AnswersNext