Reference no: EM132632062

Kasuku Ltd manufactures two products Alpha and Beta, the production of each of the products is in a different plant facility. You are provided with the information below for each of the products for the forthcoming quarter of September-December 2013.

                                                              Product Alpha

Budgeted sales Sh 3 million

Contribution margin ratio                  40%

Margin of safety                           750,000

                                                    Product Beta

Budgeted profit Sh               600,000

Contribution margin ratio          60%

Break-even point Sh            1,500,000

Required

Problem 1: With respect to product Alpha, determine the following:

1. The contribution margin
2. The total variable cost
3. The Break-even point in sales value
4. The total fixed cost

Problem 2: With respect to product Beta, determine the following:

1. The budgeted total fixed costs
2. The budgeted contribution margin
3. The margin of safety in value terms
4. The budgeted sales

Problem 3: Determine the budgeted profit of Kasuku Ltd.