a b c or d 7 Product Profitability: Sesame Ltd makes two...
80.2K
Verified Solution
Link Copied!
Question
Accounting
a b c or d 
7 Product Profitability: Sesame Ltd makes two bands of luxury pillow. The "Bert" has variable costs of 5, and the "Ernie" has variable costs of 8. They utilise a markup of 100%. Annual sales of Berts is 20,000 units and for Ernies is 10,000 units. Sesame has fixed costs of 60,000 per annum. The company is reviewing a proposal to add the "Oscar" to their range. This is expected to sell 8,000 units per annum at a variable cost of 10. Producing the Oscar would require halving production of either Bert or Ernie. If Oscar also has a 100% markup, what would be the profit per annum of the optimal outcome? a) 220,000 b) 120,000 c) 150,000 d) 160,000
a b c or d
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.