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10.15 Basic. A company sells three products: D, E and F. The market for the products dictates that the numbers of products sold are

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10.15 Basic. A company sells three products: D, E and F. The market for the products dictates that the numbers of products sold are always in the ratio of 3D:4E:5F. Budgeted sales volumes and prices, and cost details for the previous period were as follows: Sales units Selling price per unit Contribution to sales ratio D E F 300 400 500 R80 R55 R70 70% 65% 50% variable co ASSESSMENT MATERIAL 279 The budgeted total fixed costs for that period were R31,200. Required: Calculate for that period: (a) the break-even sales revenue. (b) the volume of each product that would have needed to be sold if the company had wanted to earn a profit of R29,520 in that period. (6 marks)

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