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BEP

YYakub6y ago
Hello sir; can u explain me the answer for this. EC Ltd produces and sells the following two products throughout the year in a constant mix Product X  Product Y  Variable cost per $ of sales  $0.45  $0.60 respectively.  Fixed costs  $1,212,000 per period  The  management  of  EC  has  stated  that  total  sales  revenue  will  reach  a  maximum  of  $4,000,000, and is generated by the two products in the following proportions:    Product X  Product Y  Variable cost per $ of sales  70%  30%  Required:   (a)  Calculate the breakeven sales revenue required per period, based on the sales mix  assumed above. ? 
John MoffatJohn MoffatTutor6y ago#1
Please say what it is in the answer that you are not clear about and then I will explain. (I do assume that you have watched my free lectures on multi-product CVP analysis?)
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