A company produces and sells two products with the following costs: Product X 0.45 1,212,000 per...

 

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A company produces and sells two products with the following costs: Product X £0.45 £1,212,000 per period Product Y £0.60 Variable costs (per £ of sales) Fixed costs Total sales revenue is currently generated by the two products in the following proportions: 70% 30% Product X Product Y Required: (a) Calculate the break-even sales revenue per period, based on the sales mix assumed above. (b) Prepare a profit volume chart of the above situation for sales revenue up to £4,000,000. Show on the same chart the effect of a change in the sales mix to Product X 50%, Product Y 50%. Clearly lindicate on the chart the break-even point for each situation. (c) of the fixed costs £455.000 are attributable to Product X. Calculate the sales revenue required on Product X in order to recover the attributable fixed costs and provide a net contribution of £700.000 towards general fixed costs and profit. A company produces and sells two products with the following costs: Product X £0.45 £1,212,000 per period Product Y £0.60 Variable costs (per £ of sales) Fixed costs Total sales revenue is currently generated by the two products in the following proportions: 70% 30% Product X Product Y Required: (a) Calculate the break-even sales revenue per period, based on the sales mix assumed above. (b) Prepare a profit volume chart of the above situation for sales revenue up to £4,000,000. Show on the same chart the effect of a change in the sales mix to Product X 50%, Product Y 50%. Clearly lindicate on the chart the break-even point for each situation. (c) of the fixed costs £455.000 are attributable to Product X. Calculate the sales revenue required on Product X in order to recover the attributable fixed costs and provide a net contribution of £700.000 towards general fixed costs and profit.

Answer rating: 100% (QA)

Step 1 What is BreakEven Sale Revenue BreakEven Sales It the amount of Revenue at which the Total Co... View the full answer