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how do you calculate weighted selling price for part (b) ? QUESTION 51. The Down-Town Company has hired you as their new management accountant. Your

image text in transcribedhow do you calculate weighted selling price for part (b) ?
QUESTION 51. The Down-Town Company has hired you as their new management accountant. Your first assignment is to assist management in developing profit plans for next year. The following data have already been collected:- Product A B C 4,000 9,000 14,000 Selling price per unit Variable costs per unit: Materials Labour Overheads 1,200 3,800 3,000 600 1,600 7,000 1,000 500 Fixed overheads are expected to total 9,170,000 for next year and sales are usually distributed in the following percentages in terms of units sold: A 40%, B 40%, C 20%. Required: (a) Calculate how many units of each product must be sold next year by the company:- to break even ii) to make a net profit after tax of 1,834,000 assuming that the corporate tax rate is 30% on pre-tax profits. (b) Calculate by how much will the company increase its net profit before tax for each increase in sales value of 200,000 above its break-even sales value assuming the existing mix of sales units sold is maintained? (c) The managing director has just come from a meeting with the market director and says that the sales mix for next year is likely to change to 30%, 30% and 40% for products A, B and C respectively. Will this increase or reduce the combined total number of units of products A, B and C which must be sold to break even? Briefly explain your

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