Jule Ltd makes and sells two products, Tam and Lam. The following information is
available:
Tam Lam
Production units
Sales units
Opening stock units
Budgeted capacity units
Financial Data:
$ $
Unit selling price
Unit cost:
Direct materials
Direct labour
Variable production overheads
Fixed production overheads
Fixed administration overheads were $ and Fixed selling overheads were
$
Management is planning on launching a marketing campaign to increase the sale of
Tam. They believe that the higher selling price of Tam means that it will generate more
revenue and profit than Lam. Advise management on the product they should focus on
increasing sales for. Use References
