QUESTION 1B Limited produces and sells the following three products:ProductXYZSelling price per unit (N$)162010Variable cost per unit(N$)5157Contribution per unit(N$)1153Budgeted Sales Volume (units)50,00010,000100,000The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix.Required:(a) Draw a multiproduct profit volume chart assuming the budget is achieved.

(a) Distributing fixed costs between the products, based on the total sales revenue. Product…

Answered: (a) Draw a multiproduct profit volume…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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QUESTION 1

B Limited produces and sells the following three products:

Product	X	Y	Z
Selling price per unit (N$)	16	20	10
Variable cost per unit(N$)	5	15	7
Contribution per unit(N$)	11	5	3
Budgeted Sales Volume (units)	50,000	10,000	100,000

The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix.

Required:

(a) Draw a multiproduct profit volume chart assuming the budget is achieved.

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