Question

Please format answer into a table

1. Calculate gross sales, variable costs, and gross margin (profit) for each product and for an entire company.
2. Calculate break-even sales dollars for a company.
3. Determine the relevant cash flows for a planned asset purchase.

   Madison Company produces four lines of accessories for major U.S. combine manufacturers. The lines are known by the code letters A, B, C, and D. The current sales mix for Madison Company and the contribution margin ratio for these product lines are as follows:

   Product Line	Percentage of Total Sales	Contribution Margin Ratio
   A	23.67 %	36.00 %
   B	39.33 %	42.00 %
   C	21.67 %	24.00 %
   D	15.33 %	56.00 %

   Assume total sales for next year are forecast to be $3,500,000 and total fixed costs will be $525,000.

4. Prepare a table showing the values for sales, total variable costs, and the contribution margin (gross profit) associated with each product line and the company as a whole. (15 points total – one point per table value)
5. Calculate break-even sales dollars for the Madison Company. (2 points)

Answer 1