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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
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 $49 $57 $69 Unit variable cost $30 $32 $36 Assume that total fixed cost is $354,000. a. Compute the net income before income tax based on the sales volumes shown above. Economy Standard Deluxe Unit contribution margin $ $ $ Total contribution margin Net income before income tax: $ 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 $ Standard $ Deluxe $ Break-even units Product Product Mix Contribution Margin per unit Weighted average unit contribution margin Economy $ $ Standard Deluxe $ Break-even units Product Break-even Units Unit Sales Price Break-even Sales Revenue $ $ Economy Standard Deluxe $ 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 Standard $ $ Deluxe $
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