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PART 4: MANAGEMENT ACCOUNTING 4.1 Computing the Break-Even Point for a Multi-Product Company Wiseman Inc. (a privately held company) markets two fitness products: Hero Plank
PART 4: MANAGEMENT ACCOUNTING
4.1 Computing the Break-Even Point for a Multi-Product Company
Wiseman Inc. (a privately held company) markets two fitness products:
- Hero Plank Machine
- Makeover
A contribution margin income statement for a recent month for the two games appears as follows:
Hero Plank | Makeover | Total | |||||||
Sales | $ | 55,000 | $ | 95,000 | $ | 150,000 | |||
Less: Variable expenses | 40,000 | 65,000 | 105,000 | ||||||
Contribution margin | $ | ? | $ | ? | $? | ||||
Less: Fixed expenses | 36,000 | ||||||||
Net income | $ | ? | |||||||
REQUIRED:
- Calculate the Contribution margin & Net Income for
Hero Plank ____________
Makeover ____________
Total Contribution margin ____________
Net Income ____________
- Compute the overall Contribution Margin Ratio for Wiseman Inc.
Write down the Formula for the CM Ratio and show calculated CM Ratio.
- Compute the overall break-even point for the company in sales dollars for Wiseman Inc.
Write down the Formula for Break-Even and show the calculated break-even point in $
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