KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/. ...
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Finance
KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/.
Fixed costs equal $ 105 600.
| Position | A | B | C | |
| 1. | price | 500 | 300 | 250 |
| 2. | unit variable costs | 200 | 180 | 150 |
| 3. | unit contribution margin | 300 | 120 | 100 |
| 4. | CMR | 0,6 | 0,4 | 0,4 |
| 5. | effortfulness h/unit | 3 | 2 | 0,5 |
| 6. | production structure volume index | 0,4 | 0,3 | 0,3 |
| 7. | planed production volume in units | 320 | 400 | 480 |
Calculate:
1) BEP in units for A, B and C - interpret the results
2) BEP in $ for A, B, C - interpret the results
3) If the capacity is not full and the demand exist on all of the products offered by the company, what the company should offered as a first product A, B or C? Justify your explanation.
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