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6.The company called ALOR is a commercial firm. It sells three products A, B and C. The forecasts data for the next accounting period are

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6.The company called ALOR is a commercial firm. It sells three products A, B and C. The forecasts data for the next accounting period are the following: UNIT SALES SELLING | ACQUISITION |COMMERCIAL PRODUCTS (units) A1 PRICE (E/unit) 0,000 6,7504.050 5,625 5,625 COST (E/unit) COST (%/revenues) 10% 4% 2% 8,000 20,000 2,587.5 3,262.5 We know that the fixed costs amount to a total of 78.000,000 of which 22,0000,000 are traceable and direct to product A and 12,000,000 direct traceable relate to product B, and 5,000,000 are traceable and direct to product C, while the remaining costs are common fixed costs for the company Required: 1. Prepare the Segmented Income Statement Report (Showing each product and the whole company) 2. Calculate the global breakeven point and break it down for each product in Revenues. 3. Assuming that the sales mix doesn't change, calculate the total revenues (Showing each product and the whole company) needed to obtain a target operating income of e 19,500,000 4. Calculate the critical points of each product and, based on this, decide if it would be convenient to continue commercialising the three products. Justify your answer. 5. Assuming that the total revenues provided at the required number 1 doesn't change (225,000,000), the % of variable cost doesn't change, the total fixed cost remain equal and the new sales mix is 30%, 30% and 40% for A, B and C, respectively. Prepare the new Segmented Income Statement Report (Showing each product and the whole company) and comment the impact this fact has on operating income. Note: If you find it convenient, you can express calculations in millions of euros

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