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Omega Ltd manufactures two products Alpha and Beta. The table below summarises details about the products. Alpha Beta Units sold in a year 6,000 1,200
Omega Ltd manufactures two products Alpha and Beta. The table below summarises details about the products.
| Alpha | Beta |
Units sold in a year | 6,000 | 1,200 |
Selling price per unit | $300 | $500 |
Contribution margin ratio | 0.2 or 20% | 0.4 or 40% |
Total fixed costs for Omega Ltd per year amounts to $300,000.
Required:
Calculate how many units of Alpha and Beta, respectively, must be sold to break-even while maintaining the current sales mix.
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