A business makes three products, X, Y and Z, and the revenues and expenses per unit are

X Y Ζ
£ £ £
Sales 8 4 7 Material 1.5 0.3 1.8 Labour 2.5 1.5 0.8 Variable overhead 2.0 1.0 1.4 Fixed overhead 1.0 0.5 0.5 T he normal sales mix is in the ratio X : Y: Z as 4:2:2 , and the fixed overheads have been absorbed on a budgeted combined sales volume of 24,000 units.
Required:

(a) Prepare a break-even chart to reflect the above information for the business as a whole (not by separate product line).

(b) What would be the effect on the break-even point if the sales mix became X:Y: Z as 3:4:1 ?

Transcribed Image Text:

Sales Material Labour X Y Z | 44.00 847 1.5 0.3 1.8 2.5 1.5 0.8 Variable overhead 2.0 1.0 1.4 Fixed overhead 1.0 0.5 0.5