Solve using the Contribution Margin approach The Morgan Company produces two products, G and H, with the following characteristics Total fixed costs for the year are expected to be $700,000 a What will be the net income if the forecast sales are realized b Determine the break even volumes of the tw...

To solve this problem using the Contribution Margin approach well follow these steps a Calculate the net income if the forecast sales are realized b D ...

Solve using the Contribution Margin approach. The Morgan Company produces two products, G and H, with the

Question:

Solve using the Contribution Margin approach.

The Morgan Company produces two products, G and H, with the following characteristics:

Selling price per unit Variable costs per unit Forecast sales (units) Product G Product H $5 $3 100,000 $6 $2

Total fixed costs for the year are expected to be $700,000.

a. What will be the net income if the forecast sales are realized?
b. Determine the break-even volumes of the two products. Assume that the product mix (that is, the ratio of the unit sales for the two products) remains the same at the break-even point.
c. If it turns out that Morgan sells twice as many units of H as of G, what will be the break-even volumes of the two products?

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