Product R has a contribution to sales ratio of 30%. Product S has a contribution to sales
Question:
Product R has a contribution to sales ratio of 30%.
Product S has a contribution to sales ratio of 20%.
Product T has a contribution to sales ratio of 25%.
Monthly fixed costs are £100 000. If the products are sold in the ratio:
R: 2 S: 5 T: 3
The monthly break-even sales revenue, to the nearest £1, is:
(a) £400 000
(b) £411 107
(c) £425 532
(d) Impossible to calculate without further information.
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