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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. ?
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?)