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3- The NORAN Company sells two products; product X and product Y. The information about sales price, variable expenses per unit and total fixed expenses
3- The NORAN Company sells two products; product X and product Y. The information about sales price, variable expenses per unit and total fixed expenses is given below: The total monthly fixed expenses of the company are $270,000. The company wants to generate sales revenue of $1,000,000 in the next month. To obtain this goal the company has the following options: (i). Sell of two products in the following ratio 45% product X and 55% product Y. (ii). Sell of two products in the following ratio 80% product X and 20% product Y. Required: a- Calculate the weighted average contribution margin and calculate break-even point if NORAN decides to select option (i). b- Calculate weighted average contribution margin and calculate break-even point if NORAN decides to select option (ii). c- Whichever is the better option, (i) or (ii)?. 3- The NORAN Company sells two products; product X and product Y. The information about sales price, variable expenses per unit and total fixed expenses is given below: The total monthly fixed expenses of the company are $270,000. The company wants to generate sales revenue of $1,000,000 in the next month. To obtain this goal the company has the following options: (i). Sell of two products in the following ratio 45% product X and 55% product Y. (ii). Sell of two products in the following ratio 80% product X and 20% product Y. Required: a- Calculate the weighted average contribution margin and calculate break-even point if NORAN decides to select option (i). b- Calculate weighted average contribution margin and calculate break-even point if NORAN decides to select option (ii). c- Whichever is the better option, (i) or (ii)
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