QUESTION 4 CVP Analysis
Guide to marks: 20 marks – 4 for a, 4 for b, 4 for c, 8 for
d
Show all calculations to support your answers.
A manufacturer can make two products, A and B. The following
data are available:B
Product
A
B
Total
Sales price per unit
$12
$15
Variable cost per unit
$8
$10
Total fixed costs/month
$5000
(a)Calculate the unit contribution margin for each
product.
(b)This month the manufacturer will specialise in making only...