i)Calculate the profit from sales mix 1: ii) What is your suggestion on the sales mixes to the company?

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
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The following are cost details of Ozone company:
Elements of cost
S12
D13
Sales
OMR 200
OMR 150
Direct material
OMR 100
OMR 80
Direct labor
OMR 40
OMR 30
Variable overheads
OMR 20
OMR 20
Fixed overheads OMR 100,000
Alternative sales mix:
Sales mix 1- 3000 units of S12 and 1000 units of D13
Sales mix 2 - 2000 units of S12 and 2000 units of D13
i)Calculate the profit from sales mix 1:
ii) What is your suggestion on the sales mixes to the company?
Transcribed Image Text:The following are cost details of Ozone company: Elements of cost S12 D13 Sales OMR 200 OMR 150 Direct material OMR 100 OMR 80 Direct labor OMR 40 OMR 30 Variable overheads OMR 20 OMR 20 Fixed overheads OMR 100,000 Alternative sales mix: Sales mix 1- 3000 units of S12 and 1000 units of D13 Sales mix 2 - 2000 units of S12 and 2000 units of D13 i)Calculate the profit from sales mix 1: ii) What is your suggestion on the sales mixes to the company?
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