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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.
Find the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number.
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