Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GMP Pty Ltd is a company producing sterilisation products used in cleaning. These products are divided into three categories with the following details: Expected Sales

image text in transcribed

GMP Pty Ltd is a company producing sterilisation products used in cleaning. These products are divided into three categories with the following details: Expected Sales Sales Revenue per Unit Variable Cost per Unit Sprays 10,000 $40 $10 Wipes 40,000 $20 $12 Gloves 80,000 $30 $23 Fixed costs in the business related to salaries and wages and depreciation and come to $750,000 The business is interested in analysing several potential outcomes based on the above information. Based on the above information, calculate the contribution margin per unit for each product. Fill in the appropriate squares. Sprays Wipes Gloves Contribution Margin per Unit (3 items) b) Based on the above information, compute the weighted average contribution margin (WACM) for the three products in their expected mix. Enter the WACM in the box below. Working Space Based on the above information, calculate the break even volume for each product. Enter the values in the squares below: Sprays Wipes OOO Gloves Management is interested in determining the profit produced by selling the sales mix at half volume. How much profit (before tax) is made should GMP sell half their expected volume of all three products. Place your answer in the marked square Working Space

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

8th Edition

9781119016984

More Books

Students also viewed these Accounting questions

Question

Explain the difference between design FMEA and process FMEA.

Answered: 1 week ago

Question

How does selection differ from recruitment ?

Answered: 1 week ago

Question

Group Size and Communication

Answered: 1 week ago

Question

Understanding Group Roles

Answered: 1 week ago