Changes in sales mix
XYZ Ltd produces two products and the following budget applies for 2001:
|
Product X |
Product Y |
|
|
(£) |
(£) |
|
|
Selling price |
6 |
12 |
|
Variable costs |
2 |
4 |
|
Contribution margin |
4 |
8 |
|
Fixed costs apportioned |
£100000 |
£200000 |
|
Units sold |
70000 |
30000 |
You are required to calculate the break-even points for each product and the company as a whole and comment on your findings.