Q1. Total fixed cost is $500,000. XYZ Firm manufactures three kinds of products Alpha, Beta and Gamma:

1. If sales mix ratio is 2 : 2 : 1 for products Alpha, Beta and Gamma respectively, calculate BEP (units) for composite units.

2. Determine maximum sales. (10 marks)

3. Rank the products based on limiting factor. (10 marks)

4. Draw the marginal costing table showing the profit. (10 marks)

5. Refer to your answer generated in task number 4. What will be the change in income (in percentage) if change in sales is 20% next year?

Alpha Beta Gamma Available units 25,000 hours Labor $600 $400 $500 (50 hours) (40 hours) Material for X 400 KG (60 hours) $6,000 (1 KG) Material for Y 300 KG $5,000 (1.2 KG) Material for Z 256 KG 1000 KG $2,000 (1 KG) $3,000 (1 KG) $500 $2,000 (0.8 KG) $2,500 (1.5 KG) $100 $400 Common material Other variable overheads Total variable overheads Selling price Sales demand $9,000 $9,000 5,000 $10,000 $9,000 $11,000 350 units 400 units 200 units