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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › edward
Edward sell two product with selling price and contribution as follow
Product f product g
Selling price 40 20
Contribution 10 4
Budgeted sale 150000 100000
Unit
Edward fixed cost are 14000000 per year
Edward now anticipates that more Customer will buy the cheaper product g and that budgeted sales will be 150000 unit for each product.
If this happen what would happen to the breakeven revenue??
C/s ratio of product g is lower i think mix will reduce i got this point but breakeven revenue will increase by an amount but not by the amount of extra sales of product g this is not relevant why sir
You asked this question in an earlier post, and I have answered it.
Please do not post the same question twice.