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Breakeven Sales Revenue

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven Sales Revenue

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 14, 2011 at 9:06 am #49406
    rezwana
    Participant
    • Topics: 23
    • Replies: 33
    • ☆☆

    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: 54702
    • ☆☆☆☆☆

    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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