(e) Product Blue Product Red  £ £ Selling £12.00 £24.00 Variable cost £ 4.00 £ 8.00 Contribution margin £ 8.00 £16.00 Fixed costs apportioned £200,000 £400,000 Budgeted Sales Units 140,000 60,000 Required: Calculate the breakeven points, for each product and the company as a whole and comment on your findings

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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(e) Product Blue Product Red
 £ £
Selling £12.00 £24.00
Variable cost £ 4.00 £ 8.00
Contribution margin £ 8.00 £16.00
Fixed costs apportioned £200,000 £400,000
Budgeted Sales Units 140,000 60,000
Required:
Calculate the breakeven points, for each product and the company as a whole
and comment on your findings

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