ALPHA
BETA
Maximum demand
50,000
75,000
Scarce material (kg)
0.40
0.25
Material Requirement
20,000
18,750
Q 2.1
MARGINAL COST CARD
ALPHA
BETA
Selling Price
19.99
9.99
Variable costs per unit
Raw materials
(3.38)
(2.34)
Direct labour
(1.35)
(0.24)
Total variable costs
(4.73)
(2.58)
Contribution per unit
15.27
7.41
Q2.2
BREAK EVEN ANALYSIS
ALPHA
BETA
Fixed costs
331,250
496,875
Contribution
15.27
7.41
B.E.P. (in units)
21,699.97
67,068.95
SALES REVENUE
999,500
749,250
VARIABLE COSTS
236,250
193,...
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