Page 229 - P1 Integrated Workbook STUDENT 2018

Answers

Example 3

A company manufactures and sells two products that have the following
information:

Product X Y
Selling price $50 $60
Variable costs $30 $45
Contribution per unit $20 $15
Budgeted sales (units) 20,000 10,000
Individual c/s ratio 0.4 0.25
Budgeted fixed costs are $200,000 per annum.

Calculate the following:

 the total break-even point in units and revenue

 the total number of units that must be sold in order to make a profit
of $300,000 for the year.

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