Solution-Calculate an amount of revenue to generate a

Calculate an amount of revenue to generate a target level

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Reference no: EM133139602

Question - Company A produces Product X and Product Y. Fixed overhead costs amount to Birr 200,000 every year. The following budgeted information is available for both products for next year:

	Product X	Product Y
Sales Price	Birr 50	Birr 60
Variable Cost	Birr 30	Birr 45
Budgeted Sales (in units)	20,000	10,000

Required -

1. Calculate breakeven revenue for the next year.

2. Calculate an amount of revenue to generate a target level of profit of Birr 15,000. Income taxes could be disregarded.

Reference no: EM133139602

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Calculate an amount of revenue to generate a target level

Reference no: EM133139602

Reference no: EM133139602

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