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b) T-Bug plc produces and sells 2 products T and B. The following is the budget for the coming year. T B Total Sales Units
b) T-Bug plc produces and sells 2 products T and B. The following is the budget for the coming year. T B Total Sales Units 120,000 40,000 160,000 Selling price per unit Shs.7.5 Sales 480,000 300,000 780,000 Variable cost Per Unit Shs.2 Shs.4 Total variable cost 240,000 160,000 400,000 Contribution margin 240,000 140,000 380,000 Fixed costs 250,000 Net income 130,000 Required: i. Compute the company's break-even point ii. Determine the constituents of the sales mix i.e. quantities of T and B
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