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New Wonders Corporation is involved in the business of making three products X, Y and Z. Following is the relevant information about the products.
X Y Z
Selling Price (AED/Unit) 10 12 12
Variable Costs (AED/Unit) 6 9 7
Fixed Costs (AED) 30,000
Question 1: You are required to compute for each product:
a) Contribution per unit and
b) Break-even point
c) If the corporation has the option to produce 10,000 units of any one of the three products, which one should it choose?
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