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Question 1 15 Marks Techno Max Company is an automobile spare parts company which produces Brake shoes and Brake Drum. For the year 2019 following

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Question 1 15 Marks Techno Max Company is an automobile spare parts company which produces Brake shoes and Brake Drum. For the year 2019 following information is provided Brake Shoe Brake Drum S46 $24 Selling price per unit $36 Variable cost per unit $38 Techno Max Company wants to achieve a sales target of 21,000 units of Brake Shoe and 7,000 units of Brake Drum. Total fixed costs are $234,000 You are required to compute: a. Contribution margin for each product. b. Current net income. c. Break-even point in units of both Brake Shoes and Brake Drum if the sales mix is 3 units of Brake Shoe for every single unit of Brake Drum. d. Break-even volume in total dollars if the sales mix is 2 units of Brake Shoe for every 3 units of Brake Drum Find the number of units to be sold for both the products if the company wants to make a profit of $50,000 for Brake Shoe and 75,000 for Brake Drum, using the Equation method. Divide the fixed cost equally for both the products. e

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