1. Company A produces Product X and Product Y. Fixed overhead costs amount to Birr 200,000 every year. The following budgeted information is available for both products for next year:

Product X Product Y

Sales Price Birr 50 Birr 60

Variable Cost Birr 30 Birr 45

Budgeted Sales (in units) 20,000 10,000

Required:

1. Calculate breakeven revenue for the next year.
2. Calculate an amount of revenue to generate a target level of profit of Birr 15,000. Income taxes could be disregarded.