Suppose P Limited is planning to make and sell 8,000 units of Product Alpha and 2,000...
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Suppose P Limited is planning to make and sell 8,000 units of Product Alpha and 2,000 units of Product Beta. Data relating to budgeted selling prices and contribution margin ratios for each product are given in the table below: Product Quantity Selling Contribution (units) price (£) margin ratio Alpha 8,000 120.00 25% Beta 2,000 150.00 40% Annual fixed costs are budgeted to be £378,000. What is the required sales quantity of each product in order for P Limited to break even? A) Product Alpha, 2,240 units; Product Beta, 560 units B) Product Alpha, 6,720 units; Product Beta, 1,680 units C) Product Alpha, 7,560 units; Product Beta, 1,890 units D) Product Alpha, 8,400 units; Product Beta, 2,100 units Suppose P Limited is planning to make and sell 8,000 units of Product Alpha and 2,000 units of Product Beta. Data relating to budgeted selling prices and contribution margin ratios for each product are given in the table below: Product Quantity Selling Contribution (units) price (£) margin ratio Alpha 8,000 120.00 25% Beta 2,000 150.00 40% Annual fixed costs are budgeted to be £378,000. What is the required sales quantity of each product in order for P Limited to break even? A) Product Alpha, 2,240 units; Product Beta, 560 units B) Product Alpha, 6,720 units; Product Beta, 1,680 units C) Product Alpha, 7,560 units; Product Beta, 1,890 units D) Product Alpha, 8,400 units; Product Beta, 2,100 units
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Option D is correct answer Product Alpha 8400 units and Pr... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
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