Mikumi produces and sells two products, the CK and the KL. The organisation expects to sell 1
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Question:
Mikumi produces and sells two products, the CK and the KL. The organisation expects to sell 1 CK for every 2 KLs and have monthly sales revenue of TZS150,000,000. The CK has a C/S ratio of 20% whereas the KL has a C/S ratio of 40%. Budgeted monthly fixed costs are TZS30,000,000.
Required
Calculate the budgeted break even sales.
Refer to the original data, if the organization has fixed costs of TZS100,000,000, and wishes to earn total contribution of TZS200,000,000. What level of revenue must be achieved?
Related Book For
Excellence in Business Communication
ISBN: 978-0136103769
9th edition
Authors: John V. Thill, Courtland L. Bovee
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