(a) Draw a multiproduct profit volume chart assuming the budget is achieved.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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QUESTION 1
B Limited produces and sells the following three products:
Product |
X |
Y |
Z |
Selling price per unit (N$) |
16 |
20 |
10 |
Variable cost per unit(N$) |
5 |
15 |
7 |
Contribution per unit(N$) |
11 |
5 |
3 |
Budgeted Sales Volume (units) |
50,000 |
10,000 |
100,000 |
The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix.
Required:
(a) Draw a multiproduct profit volume chart assuming the budget is achieved.
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