Chelonia ltd manufacture small robot toys. It plans to introduce two products, speedie and spunkie. It...

Chelonia ltd manufacture 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 variable cost equals to $40.for a unit of spunkie , the selling price will be $120 and the variable cost is $70.the fixed cost for producing the two products is $108000.

A.what is the break even point in units for each product?

B.the company plans to include a safety margin of $20000 before tax .assuming a tax rate of 30% what should be the budgeted sales in units?

Expert Solution

ekkarill92 answered 2 years ago

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