Balton Limited produces a single product known as Bolt in two branches X and Y the following trading results for two months are given for the two branches in two months.

June 2005 July 2005

Branch X:

Sales Units 810 960

Value GH583,200 GH691,200

Cost of sales GH561,600 GH615,600

Profit GH21,600 GH75,600

Branch Y:

Sales Units 780 830

Value GH561,600 GH591,600

Cost of sales GH512,000 GH532,000

Profit GH49,600 GH65,600

Required

1. Calculate for each of the branches the number of units to be sold to

1. Break even
2. Make a profit of GH144,000 per month

2. State which branch would suffer the larger loss if sale fall by 100 units below it break even point.

Balton Limited produces a single product known as Bolt in two branches X and Y the following trading results for two months are given for the two branches in two months.

June 2005 July 2005

Branch X:

Sales Units 810 960

Value GH583,200 GH691,200

Cost of sales GH561,600 GH615,600

Profit GH21,600 GH75,600

Branch Y:

Sales Units 780 830

Value GH561,600 GH591,600

Cost of sales GH512,000 GH532,000

Profit GH49,600 GH65,600

Required

1. Calculate for each of the branches the number of units to be sold to

1. Break even
2. Make a profit of GH144,000 per month

2. State which branch would suffer the larger loss if sale fall by 100 units below it break even point.

Balton Limited produces a single product known as Bolt in two branches X and Y the following trading results for two months are given for the two branches in two months.

June 2005 July 2005

Branch X:

Sales Units 810 960

Value GH583,200 GH691,200

Cost of sales GH561,600 GH615,600

Profit GH21,600 GH75,600

Branch Y:

Sales Units 780 830

Value GH561,600 GH591,600

Cost of sales GH512,000 GH532,000

Profit GH49,600 GH65,600

Required

1. Calculate for each of the branches the number of units to be sold to

1. Break even
2. Make a profit of GH144,000 per month

2. State which branch would suffer the larger loss if sale fall by 100 units below it break even point