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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.
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