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Problem 6 (a) ABC Ltd manufactures and sells four types of products under the brand names, A, B, C and D. The sales mix in
Problem 6 (a) ABC Ltd manufactures and sells four types of products under the brand names, A, B, C and D. The sales mix in value comprises 33 % %,41,26 %,16% % and 8%% of A, B, C and D, respectively. The total budgeted sales (100%) are $ 60,000 per month. Operating costs are as follows: Variables costs: 60% of selling price B 80% of selling price D 68% of selling price 40% of selling price Product Fixed cost is $14,700 per month. Calculate the break-even point for the products on an overall basis. (b) It has been proposed to change the sales mix as follows, the total sales per month remaining $60,000. Product A 25% B 30% D Assuming that proposal is implemented, calculate the break-even point. 40% 5% C
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