Subject: Financial Accounting.

(PLEASE TRY TO GIVE MORE POINTS ITS FOR 25 MARKS) THANK YOU.

2a) Calculate the breakeven sales from the following data for a company producing three products. (10 Marks)

Product Sales Variable Costs

A 10,000.00 6,000.00

B 6,000.00 2,500.00

C 4,000.00 2,000.00

20,000.00 10,500.00

Total Fixed costs amount to AED 8,700.

Breakeven point expressed in terms of sale amount/revenue.

Number of Units that must be sold to earn a profit of AED 160,000 Per year.

2b) ABC Ltd manufactures and sells four types of products under the brand names of A, B, C & D. The sales mix in value comprises 33.33%, 41.67%, 16.67%, 8.33% for products A, B, C & D respectively. The total budgeted sales (100%) are 100,000 per month. Operating costs are: Variable costs as per cent of selling price: Product A 40, B 48, C 30, D 20. Fixed costs AED 14,700 per month. Calculate the break-even point for the products on an over-all basis. (15 Marks)