2.1 ABC Itd. Manufactures and sells four types of products under the band names of A, B, C and D. the sales mix in value comprises 33 %, 41 2 %, 162% and 8 % of A, B, C and D respectively. The total budgeted sales (100%) are birr 60,000 per month. Operating costs are as follows: Variable cost: A 60% of selling price B 68% of selling price C 50% of selling price D 40% of selling price The fixed cost is birr 14,700 per month Required Compute the breakeven point for the products on an overall basis

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2.1 ABC Itd. Manufactures and sells four types of products under the band names of A,
B, C and D. the sales mix in value comprises 33 %, 41 2 %, 162% and 8 % of A,
3
3
3
B, C and D respectively. The total budgeted sales (100%) are birr 60,000 per month.
Operating costs are as follows:
Variable cost:
A 60% of selling price
B 68% of selling price
C 50% of selling price
D 40% of selling price
The fixed cost is birr 14,700 per month
Required
Compute the breakeven point for the products on an overall basis
Transcribed Image Text:Assignment 2.1 ABC Itd. Manufactures and sells four types of products under the band names of A, B, C and D. the sales mix in value comprises 33 %, 41 2 %, 162% and 8 % of A, 3 3 3 B, C and D respectively. The total budgeted sales (100%) are birr 60,000 per month. Operating costs are as follows: Variable cost: A 60% of selling price B 68% of selling price C 50% of selling price D 40% of selling price The fixed cost is birr 14,700 per month Required Compute the breakeven point for the products on an overall basis
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