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Question - A company produces two products. Fixed overhead costs amount to 200,000 every year. The following budgeted information is available for both products for next year: sales price 50 and 60, variable cost 30 and 45 and budgeted sales per units 20,000 and 10,000 respectevely.
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.
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