Information About Two Products Is as Follows The Firm Expects 60 Per Cent of Its Sales (In

question 29

Short Answer

Information about two products is as follows: $\begin{array}{lcc}&\text { Froduct C } & \text { Product D }\\\text { Selling price per unit } & £ 20 & £ 25 \\\text { Variable costs per unit } & \underline{11} & \underline{18} \\\text { Contribution margin per unit } & \underline{\underline{£ 9}} & \underline{\underline{ } 7}\end{array}$
The firm expects 60 per cent of its sales (in units) to be Product C (a sales mix of 6:4). Fixed costs are expected to be £82,000. Break-even in units would be $\begin{array}{lr}\text { Product C }&\text { Product D }\end{array}$
A) $\begin{array}{lr}1,200 \text { units } & 800 \text { units } \\\end{array}$
B) $\begin{array}{lr}2,460 \text { units } & 1,312 \text { units } \\\end{array}$
C) $\begin{array}{lr}18,000 \text { units } & 14,000 \text { units } \\\end{array}$
D) $\begin{array}{lr}6,000 \text { units } & 4,000 \text { units }\end{array}$

• A)\(\begin{array}{lr}
• 1,200 \text { units } & 800 \text { units } \\\end{array}\)
• B)\(\begin{array}{lr}2,460 \text { units } & 1,312 \text { units } \\\end{array}\)
• C)\(\begin{array}{lr}18,000 \text { units } & 14,000 \text { units } \\\end{array}\)
• D)\(\begin{array}{lr}6,000 \text { units } & 4,000 \text { units }
• \end{array}\)

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