Solve the following problem 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 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?

Question

Solve the following problem 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 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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The Answer of Solve the following problem 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 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?

Solve the Following Problem Using the Contribution Margin Approach