Question
Multiple Product Break-Even and Net Income Planning Madison Company manufactures and sells the following three products: Red Blue Green Unit sales 20,000 30,000 50,000 Unit
Multiple Product Break-Even and Net Income Planning Madison Company manufactures and sells the following three products:
Red | Blue | Green | |
---|---|---|---|
Unit sales | 20,000 | 30,000 | 50,000 |
Unit sales price | $29 | $61 | $17 |
Unit variable cost | $18 | $38 | $14 |
Assume that total fixed cost is $307,400.
a. Compute the net income before income tax based on the sales volumes shown above.
Red | Blue | Green | |
---|---|---|---|
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 specific 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 |
---|---|---|---|
Red | Answer | $Answer | $Answer |
Blue | Answer | Answer | Answer |
Green | Answer | Answer | Answer |
$Answer |
Break-even Answer units
Product | Break -even Units | Unit Sales Price | Break-even Sales Revenue |
---|---|---|---|
Red | Answer | $Answer | $Answer |
Blue | Answer | Answer | Answer |
Green | 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 |
---|---|---|---|
Red | Answer | $Answer | $Answer |
Blue | Answer | Answer | Answer |
Green | Answer | Answer | Answer |
$Answer |
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