Sales mix and break-even analysis

Multiproduct Break-Even Analysis Virtual Journeys Unlimited Contribution Income Statement For the Month of September Total Monuments DVD Amount Percent $20,000 100% 15,000 75% $ 5,000 25% Sales Variable expenses. Contribution margin Fixed expenses Net operating income. Parks DVD Amount Percent $80,000 100% 40,000 50% $40,000 50% Percent 100% 55% Amount $100,000 55.000 45,000 27,000 $ 18,000 45% Computation of the break-even point: Fixed expenses Overall CM ratio $27,000 0.45 = $60,000 Verification of the break-even point: Current dollar sales. Percentage of total dollar sales Monuments DVD Parks DVD $20,000 $80,000 20% 80% Total $100,000 100% Sales at the break-even point ...... $12,000 $48,000 $60,000 Total Monuments DVD Amount Percent $12,000 100% 9,000 75% $ 3,000 25% Parks DVD Amount Percent $ 48,000 100% 24,000 50% $ 24,000 50% Sales .. Variable expenses. Contribution margin Fixed expenses Net operating income. Amount $60,000 33,000 27,000 27,000 $ Percent 100% 55% 45% Multiproduct Break-Even Analysis Virtual Journeys Unlimited Contribution Income Statement For the Month of September Total Monuments DVD Amount Percent $20,000 100% 15,000 75% $ 5,000 25% Sales Variable expenses. Contribution margin Fixed expenses Net operating income. Parks DVD Amount Percent $80,000 100% 40,000 50% $40,000 50% Percent 100% 55% Amount $100,000 55.000 45,000 27,000 $ 18,000 45% Computation of the break-even point: Fixed expenses Overall CM ratio $27,000 0.45 = $60,000 Verification of the break-even point: Current dollar sales. Percentage of total dollar sales Monuments DVD Parks DVD $20,000 $80,000 20% 80% Total $100,000 100% Sales at the break-even point ...... $12,000 $48,000 $60,000 Total Monuments DVD Amount Percent $12,000 100% 9,000 75% $ 3,000 25% Parks DVD Amount Percent $ 48,000 100% 24,000 50% $ 24,000 50% Sales .. Variable expenses. Contribution margin Fixed expenses Net operating income. Amount $60,000 33,000 27,000 27,000 $ Percent 100% 55% 45%