Statement showing Computations | |||
Particulars | Product A | Product B | Total |
Revenue | 307,139.00 | 257,446.00 | 564,585.00 |
Contribution Margin | 115,878.00 | 72,846.00 | 188,724.00 |
Weighted CM Ratio | 33.4270% | ||
Sales Mix | 54.40% | 45.60% | |
Total | |||
Fixed costs | 200,000.00 | ||
Sales to break even =200,000/33.427% | 598,318.18 | ||
Proof: | Product A | Product B | Total |
Break
even sales A = 598,318.18*54.40% B = 598,318.18*45.60% |
325,490.13 | 272,828.05 | 598,318.18 |
Contribution= 598,318.18*33.427% | 199,999.82 | ||
X Company is starting a new merchandising business and provides the following budgets for its two...
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