Need help in breake even analysis

Cost Accounts 761 views 3 replies

31 Points Joined October 2011

I was asked to find out

A. Breakeven Point of Sales (Quantity and Amount) and the Sales Mix.
B. Breakeven Point of Sales (Quantity and Amount) and the Sales Mix, if the
Company require a profit of Dhs 15,000/ Per Month.

for the below question HOw do I calcutate

4	A Ltd markets 3 products A, B,C with a sales mix of (40%, 50%,10%) respectively.
	Company receive commission for each product as follows:

	Product	Commission
	A	500	Dhs/ Per Product
	B	300	Dhs/ Per Product
	C	200	Dhs/ Per Product


	Fixed Cost for the company is as follows:

	Administration Salary			Dhs 36000 Per Month
	General & Administration Staff Salary			Dhs 950000 Per Annum

	Calculate:
	A. Breakeven Point of Sales (Quantity and Amount) and the Sales Mix.
	B. Breakeven Point of Sales (Quantity and Amount) and the Sales Mix, if the
	Company require a profit of Dhs 15,000/ Per Month.