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1. Two of the ready family size meals Farm Fresh produces and sells areV (Vegan) and M (Meat). Budgets prepared for the next six
1. Two of the ready family size meals Farm Fresh produces and sells areV (Vegan) and M (Meat). Budgets prepared for the next six months give the following information: Selling price Ready meal V / unit 10.00 Ready meal M / unit 12.00 10.00 Variable costs: production and selling 5.00 Common fixed costs: production and selling for six months 561,600 You are required, in respect of the forthcoming six months : a) to state what the break-even point in will be and the number of each product this figure represents if the two products are sold in the ratio 4V to 3M; (3 marks) b) to state the break-even point in s and the number of products this figure represents if the sales mix changes to 4V to 4M (ignore fractions of products); (3 marks)
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