A company sells three products: D, E and F. The market for the products dictates that the numbers of products sold are always in the ratio of 3D:4E:5F.

 Budgeted sales volumes and prices, and cost details for the previous period were as follows:

The budgeted total fixed costs for that period were £31 200. 

Required:

Calculate for that period: 

1. The breakeven sales revenue. 

2. The volume of each product that would have needed to be sold if the company had wanted to earn a profit of £29,520 in that period.

Transcribed Image Text:

D E F Sales units 300 400 500 Selling price per unit Contribution to sales £80 £55 £70 70% 65% 50% ratio