DEF Ltd. Manufactures three products which have the following revenue and costs (per unit): Calculate i) ii) Category Product Selling price Variable cost Fixed costs: iii) Product specific General Category Product Volumes 1 29.20 16.10 1 4.90 4.60 Unit fixed costs are based on the following annual sales and production volumes (units): 3 98,200 2 13.50 7.20 2 3.50 4.60 3 28.30 9.60 42,100 6.20 4.60 111,800 Break-even point sales (to the nearest hundred) of ABC Ltd based on the current product mix; The number of units of Product 2 (to the nearest hundred) at the break-even point determined in 1) above. Comment on the viability of Product 2.
DEF Ltd. Manufactures three products which have the following revenue and costs (per unit): Calculate i) ii) Category Product Selling price Variable cost Fixed costs: iii) Product specific General Category Product Volumes 1 29.20 16.10 1 4.90 4.60 Unit fixed costs are based on the following annual sales and production volumes (units): 3 98,200 2 13.50 7.20 2 3.50 4.60 3 28.30 9.60 42,100 6.20 4.60 111,800 Break-even point sales (to the nearest hundred) of ABC Ltd based on the current product mix; The number of units of Product 2 (to the nearest hundred) at the break-even point determined in 1) above. Comment on the viability of Product 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:DEF Ltd. Manufactures three products which have the following revenue and costs (per unit):
Category Product
Selling price
Variable cost
Fixed costs:
Calculate
i)
ii)
iii)
Product specific
General
Category Product
Volumes
1
29.20
16.10
1
4.90
4.60
Unit fixed costs are based on the following annual sales and production volumes (units):
98,200
2
13.50
7.20
2
3.50
4.60
42,100
3
28.30
9.60
3
6.20
4.60
111,800
Break-even point sales (to the nearest hundred) of ABC Ltd based on the current
product mix;
The number of units of Product 2 (to the nearest hundred) at the break-even point
determined in 1) above.
Comment on the viability of Product 2.
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