1. a) A multi-national company KOTA PRINT PVT LTD produces 3 models of PRINTERS. Printer Models КР10 КР20 КР30 Total $. 1, 50, 000 $. $. $. Sales 90, 000 60, 000 Variable Cost 1, 20, 000 63, 000 36, 000 Contribution 30, 000 27, 000 24, 000 Fixed Cost 40, 500 Find out the product - mix so as to maximize the profit of the company.

1. a) A multi-national company KOTA PRINT PVT LTD produces 3 models of PRINTERS. Printer Models КР10 КР20 КР30 Total $. 1, 50, 000 $. $. $. Sales 90, 000 60, 000 Variable Cost 1, 20, 000 63, 000 36, 000 Contribution 30, 000 27, 000 24, 000 Fixed Cost 40, 500 Find out the product - mix so as to maximize the profit of the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, andGamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1 500 Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 20,000 Sales mix 50 percent 40 percent 10 percent 100 percent Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levelsof sales.Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.b) How many units of each printer must be sold to break even? c) i) Explain what is the margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units? SHOW YOUR WORKING