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  • 1.  CVP question

    Posted 10-12-2019 03:22 AM
    I am getting option A but the answr 'D'


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    Syed Yousuf Jamal

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  • 2.  RE: CVP question
    Best Answer

    Posted 10-12-2019 08:05 AM
    Hi 

    Round cake Heart shape cake Total
    1 Units 10000 15000
    2 Mix 40% 60%
    3 Sales 12 20
    4 Basket Price (2x3) 4.8 12 16.8
    5 VC 8 15
    6 Basket Vc (2*5) 3.2 9 12.2
    7 CM 1.6 3 4.6

    Break even = 94000/4.6=20434.78
    Round cake =20434.78*40% = 8173.91
    Heart Shape = 20434.78*60% = 12,261


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    Yajna Fernando
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    Original Message


  • 3.  RE: CVP question

    Posted 10-13-2019 02:34 AM
    Hi.
    Please remember the new mix percentage of 25% & 75% and you will get it right..

      Round cake Heart shape cake Total  
    1 Units 10000 15000  
    2 Mix 25% 75%  
    3 Sales 12 20  
    4 Basket Price (2x3) 3 15  
    5 VC 8 15  
    6 Basket Vc (2*5) 2 11.25  
    7 CM 1 3.75 4.75
    Break even = 94000/4.75= 19,789.47   
    Round cake =19789.47*25% = 4,947.37     
    Heart Shape = 19789.47*75% = 14,842.11   


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    Late Lawson
    Analyst
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    Original Message


  • 4.  RE: CVP question

    Posted 10-13-2019 02:28 PM
    thank u very much

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    Syed Yousuf Jamal
    None
    Alexandria
    Egypt
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    Original Message


  • 5.  RE: CVP question

    Posted 10-15-2019 02:31 PM
    Hi,

    I have missed to note the wording "If the product sales mix were to change to three heart-shaped  cakes for each round cake" . Therefore my workings is for the existing sales mix 40%:60%. 

    But it should be 25% ; 75% for the new sales mix. The above answer by Late Lawson is the correct one.

    Sorry about giving the wrong solution!

    Regards,
    Yajna

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    Yajna Fernando
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    Original Message