The following information is known about the TheGreatGig Company: TheGreatGig Company employs 2 workers who are available
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The following information is known about the TheGreatGig Company:
TheGreatGig Company employs workers who are available to work an average of per day for workable days per year.
The two company products are totally different from each other so that under no circumstances can their respective quantities be added together.
On the basis of the available information:
compute what would have been the companys breakeven point in terms of turnover assuming constancy in the components of the sales mix.
determine the physical quantities of the two products that must be sold to achieve this breakeven point again assuming constancy in the components of the sales mix, of course
calculate the contribution margin of each product by first imagining that the industrial variable costs are attributed using the direct variable cost as the allocation base and then imagining that the allocation base is the direct labour hours used by the products.
determine the new breakeven point in terms of units of the two different products that should be sold if the sales mix changes so that the company sells on average units of product A for every units of product B
attribute direct labour costs to the two products, first using a push approach and then a pull approach. In the latter case, determine the cost of unused capacity by considering only the resource "direct labour".
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