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

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?

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