Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C 355200 General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect on sales of the other two products. State and justify other assumptions made.
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:
Product A Product B Product C
Selling price per unit $11 $10.5 $8
Variable costs per unit $5.8 $6 $5.2
Attributable fixed costs $275000 $337000 $296000
Sales Units for Product A is 444000, for Product B is 666000 and for product C 355200
General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000.
Required: (Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect on sales of the other two products. State and justify other assumptions made.
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