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QUESTION 2 Madden Company has provided the following information with respect to its current year's activities: Required 1. Calculate the breakeven point per product as

image text in transcribed QUESTION 2 Madden Company has provided the following information with respect to its current year's activities: Required 1. Calculate the breakeven point per product as per the given data. (Assume sales mix is used for apportionment of fixed cost) (20 marks) 2. Calculate the profit achieved in the current year. (10 marks) 3. Management is concerned about increasing competition for some of its products and wants to increase its sales of product D relative to product C. The initiative would increase annual fixed costs by $50,000 and alter the sales mix to 25% (product A), 15\% (product B), 40\% (product C), and 20\% product D). On the available data, would you recommend the initiative? (20 marks)

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