Hello Sir
Kindly help me with this question.
Q) EC Ltd produces and sells the following two products throughout the year in a constant mix:
Product X Product Y
Variable cost per $ sales $0.45 $0.6
Fixed costs $1212,000 per period
The management of EC Ltd has stated that total revenues 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: calculate breakeven sales revenue based on the sales mix assumed above.
Sir, I did not understand whether how we are taking 70% and 30% as sales mix when it is mentioned that it is the variable cost per $ of sales.
Thank you for your help.
Ask the Tutor ACCA PM
EC Ltd (Kaplan Kit)
5y ago#1I do not have the Kaplan Kit (only the BPP Revision Kit).
It does seem from that you have typed that there is a typing error in the question and that it should say that the sales ratio is 70% 30% (and not the variable cost per $ of sales).
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