Computing the Break - Even Point for a Multi - Product Company Wiseman Inc. (
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Question:
Computing the BreakEven Point for a MultiProduct 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 $ $ $
Less: Variable expenses
Contribution margin $ $ $
Less: Fixed expenses
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 breakeven point for the company in sales dollars for Wiseman Inc.
Write down the Formula for BreakEven and show the calculated breakeven point in $
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