Product Blue Product Red £ £ Selling £12.00 £24 variable cost £4.00 £8 contribution margin £ 8.00 £16Fixed costs apportioned £200,000 £400,000 Budgeted Sales Units 140,000 60,000 a.Calculate the breakeven points, for each product and the company as a whole and comment on your findings. b. Discuss the merits and demerits of the cost volume profit analysis (CVP)
Product Blue Product Red
£ £
Selling £12.00 £24
variable cost £4.00 £8
contribution margin £ 8.00 £16
Fixed costs apportioned £200,000 £400,000
Budgeted Sales Units 140,000 60,000
a.Calculate the breakeven points, for each product and the company as a whole and comment on your findings.
b. Discuss the merits and demerits of the cost volume profit analysis (CVP)
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