Answer Happy

Question 1 BA produces and sells two products. The W sells for Rs.8 per unit and has a total variable cost of Rs.3.80 per unit, while the R sells for Rs. 14 per unit and has a total variable cost of Rs.4.20. For every five units of W sold, six units of R are sold. BA's fixed costs are Rs.43,890 per period. Budgeted sales revenue for next period is Rs.74,400, in the standard mix. Required: Calculate the margin of safety in terms of sales revenue and also as a percentage of budgeted sales revenues by calculating: a) Contribution per unit (2 marks) b) Contribution per mix (2 marks) C) Breakeven point in terms of the number of mixes = fixed costs / contribution per mix (2 marks) d) Breakeven point in terms of the number of units of products (2 marks) e) Breakeven point in terms of revenue (2 marks) f) Margin of safety (2 marks)