Hommie Delicacies Ltd (HDL) produces three different beverages - Orapine, Cocopine and Mangopine-for the Greater-Accra regional market. Obaapa OK, the financial controller, has received a sales forecast from the marketing department for the company's coming financial year. HDL Ltd has experienced considerable sales volume variations and variable costs over two (2) years. Obaapa believes the forecast should carefully be evaluated using cost-volume- profit analysis. The initial budget information for the financial year 2020 is as follows: Orapine Cocopine Mangopine Unit sales demand (bottles) 40,000 60,000 100,000 GHS GHS GHS Selling price per bottle 28 36 48 Variable manufacturing cost per bottle 13 12 26 Variable selling cost per bottle 5 4 6 Total fixed manufacturing overheads for the period GHS 2,000,000 GHS 600,000 Total fixed selling overheads for the period You are required to: Determine how many bottles each of the different fruit juice HDL Ltd must sell to break even. Determine also the sales amount for each product at break-even, assuming the sales mix remains as budgeted.
Hommie Delicacies Ltd (HDL) produces three different beverages - Orapine, Cocopine and Mangopine-for the Greater-Accra regional market. Obaapa OK, the financial controller, has received a sales forecast from the marketing department for the company's coming financial year. HDL Ltd has experienced considerable sales volume variations and variable costs over two (2) years. Obaapa believes the forecast should carefully be evaluated using cost-volume- profit analysis. The initial budget information for the financial year 2020 is as follows: Orapine Cocopine Mangopine Unit sales demand (bottles) 40,000 60,000 100,000 GHS GHS GHS Selling price per bottle 28 36 48 Variable manufacturing cost per bottle 13 12 26 Variable selling cost per bottle 5 4 6 Total fixed manufacturing overheads for the period GHS 2,000,000 GHS 600,000 Total fixed selling overheads for the period You are required to: Determine how many bottles each of the different fruit juice HDL Ltd must sell to break even. Determine also the sales amount for each product at break-even, assuming the sales mix remains as budgeted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
V5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education