CPA Rwanda

Practice session

A company sells two products, M and N, in the sales mix ratio of 3 units of M to 2 units of N. Selling price and variable cost are: Product M (Price RWF 2,000, Variable Cost RWF 1,200); Product N (Price RWF 3,000, Variable Cost RWF 1,500). Total fixed costs are RWF 27,000,000. What is the multi-product break-even point in composite batches and in total units?

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