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A company produces two products Lyn and Myn which are types of oil pants in the...

  1. A company produces two products Lyn and Myn which are types of oil pants in the month of January 2017, data relating to the two products were recorded as follows:

Products

Sales ($)

Cost of sales ($)

Fixed cost ($)

Lyn

60,000

42,000

Myn

60,000

30,000

Total

120,000

72,000

36,000

Required:

  1. Calculate the profit volume ratio for each product
  2. Compute the profit volume ratio, break-even point and net profit for the company under each of the following assumptions.
  1. Sales ratio for Lyn 60% and Myn 40%
  2. Sales ratio for Lyn 40% and Myn 60%
  1. Construct a profit volume chart showing profits estimated on sales up to $180,000 per month for each of the (i) and (ii) above
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Answer #1


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