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QUESTION (15 marks) The Noble Company manufactures two products. Information about the two products are as follows: Product A Product B R80 R30 Selling price
QUESTION (15 marks) The Noble Company manufactures two products. Information about the two products are as follows: Product A Product B R80 R30 Selling price per unit Variable costs per unit Contribution margin per unit R45 R15 R35 R15 The company expects fixed costs to be R189,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2). Required: A. Calculate the contribution margin per package. (4) B. Determine the break-even point in units for Products A and B. (6) C. Determine the level of sales in Rands) necessary to generate operating income of R135,000
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