DEF Ltd. Manufactures three products which have the following revenue and costs (per unit): Category/Product Selling...

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DEF Ltd. Manufactures three products which have the following revenue and costs (per unit): Category/Product Selling price Variable cost Fixed costs: Product specific General Category Product Volumes 1 29.20 16.10 1 4.90 4.60 98,200 2 13.50 7.20 Unit fixed costs are based on the following annual sales and production volumes (units): 2 3.50 4.60 42,100 3 28.30 9.60 3 6.20 4.60 111,800 Calculate i) ii) iii) Break-even point sales (to the nearest hundred) of ABC Ltd based on the current product mix; The number of units of Product 2 (to the nearest hundred) at the break-even point determined in 1) above. Comment on the viability of Product 2. DEF Ltd. Manufactures three products which have the following revenue and costs (per unit): Category/Product Selling price Variable cost Fixed costs: Product specific General Category Product Volumes 1 29.20 16.10 1 4.90 4.60 98,200 2 13.50 7.20 Unit fixed costs are based on the following annual sales and production volumes (units): 2 3.50 4.60 42,100 3 28.30 9.60 3 6.20 4.60 111,800 Calculate i) ii) iii) Break-even point sales (to the nearest hundred) of ABC Ltd based on the current product mix; The number of units of Product 2 (to the nearest hundred) at the break-even point determined in 1) above. Comment on the viability of Product 2.

Answer rating: 100% (QA)

ANSWER To calculate the total fixed costs for each product we need to multiply the unit fixed costs by the corresponding annual sales and production volumes Lets calculate the total fixed costs for ea... View the full answer