### CVP Analysis – A manufacturer can make two products

CVP Analysis Guide to marks: 20 marks – 4 for a, 4 for b, 4 for c, 8 for d Show all calculations to support your answers. A manufacturer can make two products, A and B. The following data are available Product A B Total Sales price per unit $12 $15 Variable cost per unit $8 $10 Total fixed costs/month $5000 (a)Calculate the unit contribution margin for each product. (b)This month the manufacturer will specialise in making only Product B. How many does he need to sell to break even? (c)If they specialise in making only A what is the breakeven sales volume for the month in sales dollars? (d)He now decides…

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