Question: XY Ltd. makes two products X and Y, whose respective fixed costs are F1 and F2. You are given that the unit contribution of
XY Ltd. makes two products X and Y, whose respective fixed costs are F1 and F2. You are given that the unit contribution of Y is one fifth less than the unit contribution of X, that the total of F1 and F2 is 1,50,000, that the BEP of X is 1,800 units (for BEP of X F2 is not considered) and that 3,000 units is the indifference point between X and Y. (i.e. X and Y make equal profits at 3,000 unit volume, considering their respective fixed costs). There is no inventory build up as whatever is produced is sold. Find out the values F1 and F2 and units contributions of X and Y.
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