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The Question Mariana Company is a multi-product company. It produces three products: X, Y and Z. Selling prices are $8 for X Product, $6 for
The Question Mariana Company is a multi-product company. It produces three products: X, Y and Z. Selling prices are $8 for X Product, $6 for Y Product and $6 for Z Product. Variable costs per unit are: $3 for Product X. $4 for Product Y and $5 for Product Z. Total Fixed Costs are $10,000. Assume that budgeted sales are 2,000 units of X, 4,000 units of Y and 3,000 units of Z. A breakeven chart would make the assumption that output and sales of X, Y and Z are in the proportions 2,000: 4,000: 3,000 at all levels of activity, in other words that the sales mix is 'fixed' in these proportions. Required: Part 1: Carry out the following calculations needed to draw the Break Even Chart: Product Budged Variable Costs Calculations S Budgeted Sales Revenues Calculations S X Y Z Total VC Add: FC Total Budgeted Part 2 Calculate each of the following: (1): Total CM (%) for all three products together (2): BEP (S)- (3); Margin Safety (5)=
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