(e) Product Blue Product Red £ £ Selling £12.00 £24.00 Variable cost £ 4.00 £ 8.00 Contribution margin £ 8.00 £16.00 Fixed costs apportioned £200,000 £400,000 Budgeted Sales Units 140,000 60,000 Required: Calculate the breakeven points, for each product and the company as a whole and comment on your findings. Discuss the merits and demerits of the cost volume profit analysis (CVP).
(e) Product Blue Product Red
£ £
Selling £12.00 £24.00
Variable cost £ 4.00 £ 8.00
Contribution margin £ 8.00 £16.00
Fixed costs apportioned £200,000 £400,000
Budgeted Sales Units 140,000 60,000
Required:
Calculate the breakeven points, for each product and the company as a whole and comment on your findings.
Discuss the merits and demerits of the cost volume profit analysis (CVP).
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