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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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