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ENGG433/956-Spring-2021-Week-7 Submission Questions 75.000 $ 11 S 45.000 S 10 $ 12 S $ 20 s 11 S Luboh P/L is thinking about entering into
ENGG433/956-Spring-2021-Week-7 Submission Questions 75.000 $ 11 S 45.000 S 10 $ 12 S $ 20 s 11 S Luboh P/L is thinking about entering into the product diversification strategy from up coming month. It projected to sell four different products that have different selling prices and variable unit costs. However, the products are manufactured in the same factory outlet and a total fixed cost of $800,000 is allocated to all products. The anticipated production line has the following information: Product Product-B Product-C Product-D Sales mix (300,000 units 150.000 30,000 Selling Price per unit Variable cost per unit Required: 1 What will be the breakeven point in total and units for each product 2 What will be the profit or loss in total for the given period? 3 The production line manager Neeron is considering about increasing competition in the market for Product-Dreletive to Product-C. This strategy will increase fixed cost by $49,000 and change the product mix to below: Product-A Product-B Product-C Product-D Sales mix (300,000 units 75,000 45,000 120,000 60,000 Neeron is not absolutely certain if the proposed strategy is beneficial to the organisation as a whole. Please recommend the management if this strategy is feasible. Show your calculations to justify your recommendation
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