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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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