Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tetley Ltd produces two varieties of teas, ginger and mint, in the ratio 4:1 respectively. Cost and revenue data for each type of tea is
Tetley Ltd produces two varieties of teas, ginger and mint, in the ratio 4:1 respectively.
Cost and revenue data for each type of tea is shown:
Ginger | Mint | |
Sales | $80 | $130 |
Less Variable costs | 30 | 90 |
Contribution | $50 | $40 |
Fixed cost for the period are expected to be $360 000.
What would be the breakeven sales mix?
Group of answer choices
6000 unnits of ginger; 1500 units of mint
1200 units of ginger; 400 units of mint
4800 units of ginger; 400 units of mint
16000 units of ginger; 4000 units of mint
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started