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Breakeven Sales Revenue

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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August 14, 2011 at 9:06 am #49406
rezwana
- Topics: 6
- Replies: 10
Could someone please help me with the following question??!!

EC ltd produces and sells the following two products throughout the year in a constant mix.

Product X Product Y
Variable Costs $0.45 $0.60
Fixed Costs $1212000 per period

The management of EC has stated that total sales revenue will reach a maximum of $4000000 and is generated by the two products in the following proportions:

Product X Product Y
Variable cost per $ of Sales 70% 30%

the question is : Calculate the breakeven sales revenue required per period, based on the sales mix assumed above

i really cannot understand how to find out the contribution from here??? and i dnt get the sales mix they are talking about?? what does it mean??!! So could someone pls solve this…???!!
August 24, 2011 at 11:37 am #86246
John Moffat
Keymaster
- Topics: 57
- Replies: 50551
Either you have mis-typed or there is a typing error in the question, because you are not told the proportions of each product. I would guess it is 70% 30% but that is not shady the question actually says.
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