Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Madam Sally produces and sells two food products: Agidi and Fula. Current revenue, cost, and unit sales data are below. Agidi Fula Selling price per

Madam Sally produces and sells two food products: Agidi and Fula. Current revenue, cost, and unit sales data are below.

Agidi

Fula

Selling price per unit

GHS 0.80

GHS 1.5

Variable expenses per unit

GHS 0.35

GHS 1.1

Number of units sold monthly

25,000 units

30,000 units

Fixed expenses are GHS8,000 per month.

Required:

  1. Compute the break-even point in cedis for the entire business.
  2. Compute the margin of safety as percent of sales for the entire business.
  3. Assuming the sales mix above, determine the break-even point in cedis for each of the products.

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

Step: 3

blur-text-image

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

Conducting An Institutional Diversity Audit In Higher Education A Practitioners Guide To Systematic Diversity Transformation

Authors: Edna Chun, Alvin Evans, Benjamin D. Reese

1st Edition

1620368196, 978-1620368190

More Books

Students also viewed these Accounting questions

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago