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Kapland : Revision Kit 21/22 Q82
Hi John,
Could you please explain: Co makes & sells product X & Y. Twice as many units of Y are made & sold as that X. Contribution of each X: $10 & Y is $4. Fixed cost $90000. What is total units which must be made & sold to make a profit of $45000?When do we use Weight Average Contribution please?
You need the weighted average contribution when it is multi-product breakeven analysis as in this question.
You can find full details with examples in my free lectures on CVP analysis. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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