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 1. What is the break-even point in sales for product A, B, and C?

.

First calculate the weighted average contribution margin ratio for the product mix.

.

Calculate the contribution margin ratio per unit for each product individually:

contribution margin ratio = Contribution margin per units / Selling price of each units

Product

A

B

C

Contribution margin per units

6

3

3

Selling price of each units

8

5

4

contribution margin ratio

6 / 8

=0.75

3 / 5

=0.60

3/4

=0.75

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Divide the fixed costs by the contribution margin ratio to calculate the break-even sales for three products:

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Break-even point in sales revenue = Fixed cost / contribution margin ratio

Break-even point in sales units = Fixed cost / contribution margin per units

.

Product

A

B

C

Fixed cost

4000

7000

1000

Contribution margin ratio

0.75

0.60

0.75

Contribution margin per units

6

3

3

Break-even sales revenue

5333

11667

1333

Break-even point in sales units

667

2333

333

.

2. What is the total profit given the sales mix in the table?

Total contribution - fixed cost = profit

Product A

Product B

Product C

Total

Contribution (units * Contribution per units )

600*6

=3600

4000*3

=12000

400*3

=1200

$16800

Fixed cost

4000

7000

1000

$12000

Total Profit

$4800

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QUESTION 6 (a) The bar shown in Figure Q2(a) is subjected to tensile load of 150 Kn. If the stress in the middle portions is limited to 160 N/mm², determine the diameter of the middle portion. Find also the length of the middle portion if the total elongation of the bar is to be 0.25 mm. E E = 2.0 + 105N/mm². (12 marks) 150 KN 10 cm DIA 10 cm DIA 150 KN 45 cm Figure Q6(a) (b) A brass bar, having cross-section area of 900 mm², is subjected to axial forces as shown in Figure Q2(b), in which AB = 0.6 m, BC = 0.8 m, and CD = 1.0 m. Find the total elongation of the bar. E = 1.0 + 105N/mm2 . (8 marks) Page 4 of 5 B D 40 KN 70 KN 20 KN 10 KN Figure Q6(b) (TOTAL = 20 MARKS)

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