Question

MGT 5 - MANAGERIAL ACCOUNTING PROBLEM 8B FC TOTAL GIVEN: PRODUCT A PRODUCT B PRODUCT C CM/UNIT MIX % 25.00% 30.00% 45.00% 171.000 TAX RATE 40% AFTER-TAX NI 45,600 REQUIRED PREPARE A COMPLETE INCOME STATEMENT REFLECTING THE ABOVE DATA PRODUCT A PRODUCT B PRODUCT CM/UNIT 14 MIX % 25.00% 30.00% 45.00% WIA CM/UNIT 2.00 1.20 6.30 PRE-TAX NI 76,000 PRODUCT A PRODUCT B PRODUCT C UNITS 6,500 7,800 11,700 CM/UNIT 14 TOTAL CM 52,000 31.200 163,800 FC PT TAX 4 9.50 TOTAL 26,000 247.000 171.000 76.000 30,400 45,600 PROBLEM 8B 40% GIVEN PRODUCT A PRODUCT B PRODUCT C CM/UNIT MIX % 25.00% 30.00% 45.00% FC 171.000 TAX RATE AFTER-TAX NI 68,400 REQUIRED PREPARE A COMPLETE INCOME STATEMENT REFLECTING THE ABOVE DATA PRODUCT A PRODUCT B PRODUCT C CM/UNIT 8 14 MIX % 25.00% 30.00% 45.00% WIA CM/UNIT 2.00 6.30 PRE-TAX NI 114.000 PRODUCT A PRODUCT B PRODUCT C UNITS 7,500 9.000 13.500 CM/UNIT TOTAL CM 60,000 36.000 189.000 TOTAL 1.20 9.50 TOTAL 30,000 14 FC PT 285,000 171,000 114.000 45,600 68.400 TAX AT

Please showing the solution in steps.

Answer 1

Solution to Problem No. 1

A. Calculation of total Contribution Margin
After Tax Net Income (NI)		45600
Add :- Tax	45600/(100-40)*40	30400
Income Before Tax (PT)		76000
Add:- Fixed Cost		171000
Total Contribution Margin		247000
B. Calculation of total Contribution Margin
		PRODUCT A	PRODUCT B	PRODUCT C	Total
CM/UNIT		8	4	14
Mix %		25%	30%	45%
Weighted Avergae CM	CM/Unit*Mix %	2	1.2	6.3	9.5
Total Units			(247000/9.5)		26000
C. No. of Units of Each Product
		A	B	C	Total
Total Units					26000
Mix %		25%	30%	45%
No. of units	Total Units * Product Mix %	6500	7800	11700	26000
Profitability Statement
	Remarks	A	B	C	Total
No. of units	Note C	6500	7800	11700	26000
CM/Unit	Given in Problem	8	4	14
Total CM	No. of Units* CM/Unit	52000	31200	163800	247000
FC	Given in Problem				171000
PT	Total CM-FC				76000
Tax	@40%				30400
AT	PT-TAX				45600

Solution to Problem No. 2

A. Calculation of total Contribution Margin
After Tax Net Income (NI)		68400
Add :- Tax	68400/(100-40)*40	45600
Income Before Tax (PT)		114000
Add:- Fixed Cost		171000
Total Contribution Margin		285000
B. Calculation of total Contribution Margin
		PRODUCT A	PRODUCT B	PRODUCT C	Total
CM/UNIT		8	4	14
Mix %		25%	30%	45%
Weighted Avergae CM	CM/Unit*Mix %	2	1.2	6.3	9.5
Total Units			(285000/9.5)		30000
C. No. of Units of Each Product
		A	B	C	Total
Total Units					30000
Mix %		25%	30%	45%
No. of units	Total Units * Product Mix %	7500	9000	13500	30000
Profitability Statement
	Remarks	A	B	C	Total
No. of units	Note C	7500	9000	13500	30000
CM/Unit	Given in Problem	8	4	14
Total CM	No. of Units* CM/Unit	60000	36000	189000	285000
FC	Given in Problem				171000
PT	Total CM-FC				114000
Tax	@40%				45600
AT	PT-TAX				68400