Question: Part 2: Lorlent plc Lorient plc has three products all of which require the same production facilities. Financial data on the three products are as
Part 2: Lorlent plc Lorient plc has three products all of which require the same production facilities. Financial data on the three products are as follows: Product E per unit 10 Eper unit 15 E per unit 20 Labour skilled unskilled Materials Variable overheads Share of fixed overheads 12 12 15 15 16 20 10 All three of the products use just one raw material, which is the same material for all three products. This material costs 12 a kilo and is scarce, such that the amount of all three products that can be produced falls well below the amounts that the market would take. All labour is a variable cost Product X is sold in a market where the selling price per unit is fixed at 60. Required: Show, with workings and explanations, the price at which the business would need to sell products Y and Z such that it would be equally profitable to produce and sell any one of the three products
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