Question
XYZ Ltd. manufactures Product A and Product B. Information about the two products is as follows: Product A Product B Selling price per unit 100
- XYZ Ltd. manufactures Product A and Product B. Information about the two products is as follows:
|
| Product A | Product B |
| Selling price per unit | 100 | 90 |
| Variable costs per unit | 30 | 20 |
The company expects fixed costs to be 210,000. The products are sold as a package that contains 4 units of Product A and 1 unit of Product B.
Required:
- Calculate the contribution margin per package.
- Determine the break-even point in units for Product A and Product B.
- Determine the level of sales (in POUNDS) necessary to generate a before-tax profit of 140,000.
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Active Auditing A Practical Guide To Lean And Agile Auditing
Authors: Prescott Coleman, Sandy Kasahara
1st Edition
1092839305, 978-1092839303
