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A) you are provided with the following data bout AX Ltd Details X Y W Sales (unit 8000 7500 9500 Selling price/unit 100 110 95
A) you are provided with the following data bout AX Ltd
Details | X | Y | W |
Sales (unit | 8000 | 7500 | 9500 |
Selling price/unit | 100 | 110 | 95 |
Direct material cost Ksh (sh.5 per kg | 40 | 35 | 30 |
Direct labour cost (ksh) (shilling 10 per hour | 15 | 20 | 25 |
Other variable cost (ksh | 20 | 10 | 15 |
Fixed costs/unit Reqiured: I) compute the current profitability of the firm Ii) compute the break even units and Sales value for each product Iii) the management is contemplating dropping product X (since it is the least profitable ) and this would reduce its attributable fixed cost by ksh 8000 Advise the management | 20 | 15 | 10 |
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