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To calculate the break-even point for the company as a whole, we first need to use the data provided in the table. Let's break down the process step by step:

### Given Data:
For product F1:
- Selling price (LE): 50
- Variable cost per unit (LE): 30
- Fixed cost for product (LE): 2000
- Expected sales volume: 500

For product F2:
- Selling price (LE): 36
- Variable cost per unit (LE): 27
- Fixed cost for product (LE): 6000
- Expected sales volume: 2000

### Step 1: Contribution margin per unit for each product
The contribution margin is calculated as:
\[
\text{Contribution Margin} = \text{Selling Price} - \text{Variable Cost}
\]

For F1:
\[
\text{Contribution Margin (F1)} = 50 - 30 = 20
\]

For F2:
\[
\text{Contribution Margin (F2)} = 36 - 27 = 9
\]

### Step 2: Total fixed costs
Total fixed costs are the sum of the fixed costs for both products:
\[
\text{Total Fixed Costs} = 2000 + 6000 = 8000 \, \text{LE}
\]

### Step 3: Sales mix (proportion of each product's sales)
Sales mix is the proportion of sales volume of each product to the total sales volume.

\[
\text{Sales Volume (F1)} = 500, \quad \text{Sales Volume (F2)} = 2000
\]
\[
\text{Total Sales Volume} = 500 + 2000 = 2500
\]
\[
\text{Sales Mix (F1)} = \frac{500}{2500} = 0.2, \quad \text{Sales Mix (F2)} = \frac{2000}{2500} = 0.8
\]

### Step 4: Weighted average contribution margin
The weighted average contribution margin (WACM) is calculated as the sum of the contribution margins of both products, weighted by their sales mix:
\[
\text{WACM} = (0.2 \times 20) + (0.8 \times 9)
\]
\[
\text{WACM} = 4 + 7.2 = 11.2 \, \text{LE}
\]

### Step 5: Break-even point (in units)
The break-even point in units can be calculated using the formula:
\[
\text{Break-even point (units)} = \frac{\text{Total Fixed Costs}}{\text{Weighted Average Contribution Margin}}
\]
\[
\text{Break-even point (units)} = \frac{8000}{11.2} \approx 714.29 \, \text{units}
\]

### Step 6: Break-even point (in sales volume)
Now, to find the break-even point in terms of sales for each product, we distribute the 714.29 units based on the sales mix:
- For F1: \( 714.29 \times 0.2 \approx 142.86 \, \text{units} \)
- For F2: \( 714.29 \times 0.8 \approx 571.43 \, \text{units} \)

Thus, the company must sell approximately 143 units of F1 and 571 units of F2 to break even.

Would you like a further explanation of any step or additional details?

Here are 5 related questions you might find useful:
1. How does changing the fixed cost impact the break-even point?
2. How would changes in the sales mix affect the weighted average contribution margin?
3. What is the break-even point in terms of revenue instead of units?
4. How can this analysis be adapted for more than two products?
5. What role does the contribution margin play in determining profitability?

**Tip**: Always consider the sales mix when calculating the break-even point for multiple products—it can significantly impact the overall result.

The break-even point for the company as a whole, given data on selling prices, variable costs, fixed costs, and expected sales volumes for two products.

Learn how to calculate the break-even point for a company selling two products, F1 and F2, using contribution margins, sales mix, and fixed costs. This example demonstrates step-by-step how to apply break-even analysis in business planning. Suitable for students in Grades 10-12.

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