pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDERQUESTION 6(a)Let a be the selling price for item ALet b be the selling price for item BLet c be the selling price for item CFor the company to break even total revenue must be equal to total cost.i.e. 4a + 5b + 3c = 22,000a + 6b + 4c = 20,0002a + 3b + c = 10,000(b) 4 5 3 a 22,0001 6 4 b = 20,0002 3 1 c 10,000A X = BA = 4 5 31 6 4 = 4(6 – 12) – (1 – 8) + 3(3-12)2 3 1 = 4(-6) -5(-7) +3 (-9)= -24 + 35 - 27= -16a =a = 22000 5 320000 6 4 = 22000(6-12) -5 (20000 – 40000)10000 3 1 + 3 (60000 – 60000)= -32000b = 4 22000 31 20000 4 = 4(20000 – 40000) - 22000 (1-8)2 10000 1 + 3 (10000 – 40000)= -16000c = 4 5 220001 6 20000 = 4(60000 – 60000) – 5(10000 – 40000)2 3 10000 + 22000 (3-12)- 48000a = -32,000 = 2000A -16INTERMEDIATE EXAMINATION - NOVEMBER 201135