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Calculate the contribution margin per package

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Reference no: EM132908418

Question - Better Ltd. manufactures Product C and Product D. Information about the two products is as follows:

 

Product C

Product D

Selling price per unit

£100

£90

Variable costs per unit

30

20

The company expects fixed costs to be £210,000. The products are sold as a package that contains 4 units of Product C and 1 unit of Product D

a. Calculate the contribution margin per package.

b. Determine the break-even point in units for Product C and Product D.

c. What sale revenue necessary to generate a profit of £140,000.

Reference no: EM132908418

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