Question: International Printer Machine (IPM) builds three computer printer models: Inkjet, Laser and color Laser. Information for these three products is as follows; Inkjet (Tshs) Laser
International Printer Machine (IPM) builds three computer printer models: Inkjet, Laser and color Laser. Information for these three products is as follows; Inkjet (Tshs) Laser (Tshs) Color Laser (Tshs) Total Selling price per unit 250 400 1,600 Variable cost per unit 100 150 800 Expected unit sales (annal) 12,000 6,000 2,000 20,000 Sales mix 60% 30% 10% 100% Total annual fixed costs are Tshs 5,000,000. Assume the sales mix remains the same at all levels of sales. Required; i. How many printers in total must be sold to breakeven ii.How may units of each printer must be sold to brekeven iii.How many printers in total must be sold to earn an annual profit of Tshs 1,000,000? iv.How many units of each printer must be sold to earn an annual profit of Tshsn 1,000,000?
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