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Please help ASAP Multiproduct Company produces 3 products. PRODUCT 1 PRODUCT 2 PRODUCT 3 Price/unit Variable cost/unit Expected Sales (units) $5 3 100,000 $6 2
Please help ASAP
Multiproduct Company produces 3 products. PRODUCT 1 PRODUCT 2 PRODUCT 3 Price/unit Variable cost/unit Expected Sales (units) $5 3 100,000 $6 2 150,000 $7 4 250,000 Total fixed costs for the company are $1,240,000. a) Prepare an Income Statement using the format used in class (and in the text for sales mix) for the 3 products above and the company as a whole. Assuming the product mix would be the same at the break-even point as above, compute the Break-even point in sales dollars. ( use 3 decimal points to calculate CM% je. .105 = 10.5%) b) Explain what would happen to the overall contribution ratio if we sold 50,000 units of Product 1,300,000 units of Product 2, and the same units of Product 3? WHY? (It is not necessary to calculate the new breakeven point or a new income statement-marks will only be given for the explanation and supporting information)Step by Step Solution
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