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Forums › Ask CIMA Tutor Forums › Ask CIMA P1 Tutor Forums › P1 Management Accounting Breakeven Analysis
Hello !
Respected Tutors, I am just Confused in this question please give the detailed solution of this.
Question) A Co. Produces and sells three products A B and C.The projected Revenue and Contribution to sales ratio (C/S) for product A and B are a follows:
Revenue A $10 Million
C/S Ratio A 15%
Revenue B — $20 million
C/S Ratio B– 10%
Product C as a c/s ratio of 25%
The Co. total Fixed Cost are $5.5 million and the Co. wants to earns a profit of $1 million.
What is the revenue that needs to be generated by Product C , in $ million , to achieve the required profit ?
Give your answer to the nearest $ million.
Hi, Thank you for your question.
Ive actually answered this question on here before – please follow the link below:
https://opentuition.com/topic/moved-reply-to-multi-product-breakeven-analysis/
Kind Regards
Cath