Zaea Ltd. Produces two products namely; Z and R. The following information relates to the budget for the year ended 30 June 2022: ...

      

Zaea Ltd. Produces two products namely; Z and R. The following information relates to the budget for the year ended 30 June 2022:
Product Z Product R
Sh. Sh.
Selling price per unit 6 12
Variable cost per unit 2 4
Contribution per unit 4 8
Fixed costs apportioned 100,000 200,000
Units sold (kgs) 70,000 30,000

Required:
(i) Calculate the break-even points for each product.
(ii) The break-even point of product Z to achieve a target profit of sh.60,000.
(iii) The margin of safety of product R.
(iv) The product to produce based on the break-even-point calculated in (b) (i) above.

  

Answers

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francis1897 answered the question on November 14, 2022 at 08:10

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