PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

EC Ltd (Kaplan Kit)

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

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 22, 2021 at 2:54 pm #621452
simran98
Member
- Topics: 17
- Replies: 18
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.
May 23, 2021 at 10:11 am #621497
John Moffat
Keymaster
- Topics: 56
- Replies: 51585
I 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).
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.