Question

Not sure how to complete this multi production CM income statement at breakeven. If you can be detailed in your answers so I can understand it, that would be awesome! Thanks in advance!

Applicable to the company as a whole:
Net income earned during most recent period:				$                           65,000
Contribution margin ratio:				15%
Fixed costs incurred during most recent period:				$                         175,000
Statutory tax rate:				37%
Operating income generated at breakeven:				$                                    -
Applicable to the Football Division
Selling price per football				$                             18.00
Total variable cost dollars incurred by Football Division				$                         952,088
Quantity of footballs sold during most recent period:				64,000
Applicable to the Baseball Division
Variable cost per baseball:				$                                3.24

	Footballs			Baseballs			Total
	Total $	$ per Unit	Sales Ratios	Total $	$ per Unit	Sales Ratios	Total $	Sales Ratios*
Revenues	$ 1,152,000	$      18.00	62%	$   702,497	$        3.65	38%	$ 1,854,497.35	100%
Variable Costs	$    952,088	$      14.88	60%	$   624,235	$        3.24	40%	$      1,576,323	100%
Contribution Margin	$    199,912	$        3.12	72%	$     78,263	$        0.41	28%	$          278,175	100%
Fixed Costs							$          175,000
Operating income							$          103,175
Income Tax							$      38,174.60
Net income							$            65,000

	Footballs			Baseballs			Total
	Total $	$ per Unit	Sales Ratios	Total $	$ per Unit	Sales Ratios	Total $	Sales Ratios
Revenues							$ 1,166,666.67
Variable Costs
Contribution Margin
Fixed Costs
Operating income
Income Tax
Net income

Answer 1

Solution:

Contribution margin income statement
Particulars	Footballs			Baseballs			Total
	Amount	Per unit	Sales ratios	Amount	Per unit	Sales ratios	Amount	Sales ratios
Sales Revenue	$723,334	$18.00	62%	$443,333	$3.65	38%	$1,166,667	100%
Variable costs	$595,000	$14.88	60%	$396,667	$3.24	40%	$991,667	100%
Contribution margin	$128,333	$3.12	72%	$46,667	$0.41	28%	$175,000	100%
Fixed costs							$175,000
Opearting income							$0
Income tax							$0
Net Income							$0