KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/. ...
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Finance
KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/.
Fixed costs equal $ 105 600.
Position
A
B
C
1.
price
500
300
250
2.
unit variable costs
200
180
150
3.
unit contribution margin
300
120
100
4.
CMR
0,6
0,4
0,4
5.
effortfulness h/unit
3
2
0,5
6.
production structure volume index
0,4
0,3
0,3
7.
planed production volume in units
320
400
480
Calculate:
1) BEP in units for A, B and C - interpret the results
2) BEP in $ for A, B, C - interpret the results
3) If the capacity is not full and the demand exist on all of the products offered by the company, what the company should offered as a first product A, B or C? Justify your explanation.
Answer & Explanation
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