QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products? (b)Calculate the break-even sales revenue required AND Calculate the margin of safety. (c)Calculate the amount of sales revenue required to generate a profit of N$600000. (d)Draw a multiproduct profit volume chart assuming the budget is achieved.
QUESTION 1
B Limited produces and sells the following three products:
|
Product |
X |
Y |
Z |
|
Selling price per unit (N$) |
16 |
20 |
10 |
|
Variable cost per unit(N$) |
5 |
15 |
7 |
|
Contribution per unit(N$) |
11 |
5 |
3 |
|
Budgeted Sales Volume (units) |
50,000 |
10,000 |
100,000 |
The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix.
Required:
(a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products?
(b)Calculate the break-even sales revenue required AND Calculate the margin of safety.
(c)Calculate the amount of sales revenue required to generate a profit of N$600000.
(d)Draw a multiproduct profit volume chart assuming the budget is achieved.
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