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Multiple Product CVP Question: In addition to bikes, Nord wants to produce and sell Carts Nord provides us with the following additional information: Bike;
Multiple Product CVP Question: In addition to bikes, Nord wants to produce and sell Carts Nord provides us with the following additional information: Bike; Selling Price -- $500 Variable costs -- $300 Contribution Mar ( ) Current Units sold: 750 Cart: $400 $250 ( 250 Nord's total fixed costs (common fixed costs) is $200,000, which can't be separated to neither bike nor cart. Required: (1) Prepare current contribution margin income statement of Nord for Bike, Cart and total using Excel. (2) Calculate sales mix and unit Contribution margin of each product. (3) Calculate breakeven in unit and in sales dollars? (4) If management wants to have after tax profit of $1,200,000, how many unit of each product mush be sold when tax rate is 40%?
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