Practicing Success
Toy craft produces toy alligators and toy dolphins. Fixed costs are Rs1290000 per year. Sales revenue and variable costs per unit are as follow:
Suppose the company currently sells 140,000 alligators per year and 60,000 dolphins per year (Sales Mix Percentage 14:6). Assuming the sales mix stays constant, answer the following question. |
What will be the contribution margin for alligators and dolphins respectively? |
Rs 11,20,000 and Rs 6,00,000 respectively Rs 12,80,000 and Rs 7,00,000 respectively Rs 16,80,000 and Rs 9,00,000 respectively Rs 10,20,000 and Rs 6,50,000 respectively |
Rs 16,80,000 and Rs 9,00,000 respectively |
|