for the last year A multi product Company has the following costs and output data Product X Y Sales Mix 25% $ 30 40% 35% Selling Price Variable Cost per unit Total Fixed Costs 20 25 10 15 18 1,50,000 5,00,000 The company proposes to replace product Z by Products S. Estimated cost and output data Total Sales are : Y S 20% $ 50% 30% $ 25 Sales Mix Selling Price Variable Cost/unit 20 28 10 15 14 1,50,000 5,00,000 Total Fixed Cost Total Sales Analyse the proposed change and suggest what decision the Company should take.

for the last year A multi product Company has the following costs and output data Product X Y Sales Mix 25% $ 30 40% 35% Selling Price Variable Cost per unit Total Fixed Costs 20 25 10 15 18 1,50,000 5,00,000 The company proposes to replace product Z by Products S. Estimated cost and output data Total Sales are : Y S 20% $ 50% 30% $ 25 Sales Mix Selling Price Variable Cost/unit 20 28 10 15 14 1,50,000 5,00,000 Total Fixed Cost Total Sales Analyse the proposed change and suggest what decision the Company should take.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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