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Question 4. Affordable-Lid, producing and selling three types of bags for adult female namely: Exclusive, Premium and Regular. The sales price of each type is
Question 4. Affordable-Lid, producing and selling three types of bags for adult female namely: Exclusive, Premium and Regular. The sales price of each type is $40, $30, and $25 respectively. The variable cost of each type is $30, $26 and $19 respectively. The manager estimates sales of 200,000 units in the coming year consisting of the following proportion: 20,000 units of Exclusive, 60,000 units of Premium and 80,000 units of Regular, The company annual fixed costs for the year are $161,000. Required (show your workings and round it to the nearest two decimal places): a) Compute the contribution margin of each type of the product and determine the total profit. b) Calculate the estimated break-even point in units for each type of purse
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