Changes in sales mix
XYZ Ltd produces two products and the following budget applies for 2001:
| Product X | Product Y | |
| (£) | (£) | |
| Selling price | 6 | 12 |
| Variable costs | 2 | 4 |
| Contribution margin | 4 | 8 |
| Fixed costs apportioned | £100000 | £200000 |
| Units sold | 70000 | 30000 |
You are required to calculate the break-even points for each product and the company as a whole and comment on your findings.
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