Q1. Total fixed cost is $500,000. XYZ Firm manufactures three kinds of products Alpha, Beta...
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Q1. Total fixed cost is $500,000. XYZ Firm manufactures three kinds of products Alpha, Beta and Gamma:
1. If sales mix ratio is 2 : 2 : 1 for products Alpha, Beta and Gamma respectively, calculate BEP (units) for composite units
Alpha Beta Gamma Available units 25,000 hours Labor $600 $400 $500 (50 hours) (40 hours) Material for X 400 KG (60 hours) $6,000 (1 KG) Material for Y 300 KG $5,000 (1.2 KG) Material for Z 256 KG 1000 KG $2,000 (1 KG) $3,000 (1 KG) $500 $2,000 (0.8 KG) $2,500 (1.5 KG) $100 $400 Common material Other variable overheads Total variable overheads Selling price Sales demand $9,000 $9,000 5,000 $10,000 $9,000 $11,000 350 units 400 units 200 units
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