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Demonstrate what should be the budgeted sales in units

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Reference no: EM132546433

Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It is anticipated that the product mix will be 40% Speedie and 60% Spunkie. One unit of Speedie will be sold for $100, with 1liariable cost equals $11G. For a unit of Spunkie, the selling price will be $120 and the yariable cost is 57m. The fixed cost for producing the two products ls $108 000.

Question a. What Is the break-even point in units for each product?

Question b. The company plans to include a safety margin of $20 000 before tax. Assuming a tax rate of 30%, what should be the budgeted sales in units?

Reference no: EM132546433

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