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in (a) above? QUESTION 3 POD Limited makes and sells three products, X, Y and Z. The selling price per unit and costs are
in (a) above? QUESTION 3 POD Limited makes and sells three products, X, Y and Z. The selling price per unit and costs are as follows: Xx Y K K NX Z K Selling price per unit 80 50 70 Variable cost per unit 50 10 20 Fixed costs per month are K160, 000. The maximum sales demand per month is 2,000 units of each product and the minimum sales demand is 1,000 units of each. Required: (a) Comment on the potential profitability of the company (b) Suppose that there is a fixed demand for X and Y of 1,500 units per month that will not be exceeded but for which firm orders have been received. Calculate the number of units of Z that would have to be sold to achieve a profit of at least K25,000 per month. How about units needed to breakeven?
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