Question

Q4. Addis Marine Products Inc. Plans to manufacture and sell accessories for recreational fishing craft and pleasure boats. Three of the principal product lines are manufactured at the Awassa plant. Operating data for the coming year is estimated as follows: Product Lines Ethio-01 Ethio-02 Ethio-03 Sales price Br. 150 Br. 80 Br. 40 Variable costs 100 60 10 Units sales 3, 200 units 1, 600 units 4, 800 units

Answer 1

Target sales (in units)= FC + NIBT= 840, 000 +105, 000= 27, 000 unitsAverage CM50(2)+20(1)+30(3)2 +1+3Product LinesTarget sales in unitsTarget sales inbirrsEthio-0127, 000 x 2/6= 9, 000 units9, 000 x150=Br.1,350,000Ethio-0227, 000 x 1/6 = 4, 5004, 500 x 80 =360, 000Ethio-0327, 000 x 3/6= 13, 50013, 500 x 40 =540000

Step-by-step explanation: