Question
Chelonia ltd manufacture small robot toys. It plans to introduce two products, speedie and spunkie. It is anticipated that the product mix will be 40%speedie
Chelonia ltd manufacture small robot toys. It plans to introduce two products, speedie and spunkie. It is anticipated that the product mix will be 40%speedie and 60%spunkie. One unit of speedie will be sold for $100,with variable cost equals to $40.for a unit of spunkie , the selling price will be $120 and the variable cost is $70.the fixed cost for producing the two products is $108000.
A.what is the break even point in units for each product?
B.the company plans to include a safety margin of $20000 before tax .assuming a tax rate of 30% what should be the budgeted sales in units?
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