XYZ Limited budgets to sell 3 products and has provided you with the following selling prices...

 

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XYZ Limited budgets to sell 3 products and has provided you with the following selling prices and variable costs: Product Sales Units Selling Price per unit N$ 10 Variable Cost per unit N$ 600 000 400 000 1 000 000 Y 11 Annual fixed costs are budgeted at N$4 000 000. Marks Required Sub- Total Total 2.1 Calculate the total budgeted profit. 2.2 Calculate the contribution to sales ratio for each product. 2.3 Calculate the breakeven sales volume per product in total. 6. 6. 12 How many units of each product and in total would XYZ Ltd need to sell to 2.4 earn a total profit of N$6 000 000? 18 XYZ marketing manager is proposing to spend an extra N$400 000 on advertising and sales promotion of Product X. She is considering 2.5 reducing the selling price of X to N$9 per unit, resulting in expected 25 sales of 800 000 units. Evaluate the financial viability of this proposal. Total 25 563 XYZ Limited budgets to sell 3 products and has provided you with the following selling prices and variable costs: Product Sales Units Selling Price per unit N$ 10 Variable Cost per unit N$ 600 000 400 000 1 000 000 Y 11 Annual fixed costs are budgeted at N$4 000 000. Marks Required Sub- Total Total 2.1 Calculate the total budgeted profit. 2.2 Calculate the contribution to sales ratio for each product. 2.3 Calculate the breakeven sales volume per product in total. 6. 6. 12 How many units of each product and in total would XYZ Ltd need to sell to 2.4 earn a total profit of N$6 000 000? 18 XYZ marketing manager is proposing to spend an extra N$400 000 on advertising and sales promotion of Product X. She is considering 2.5 reducing the selling price of X to N$9 per unit, resulting in expected 25 sales of 800 000 units. Evaluate the financial viability of this proposal. Total 25 563

Answer rating: 100% (QA)

Selling Variable Contribution Total Contribution Price Cost margin Contribution margin Product Sales ... View the full answer