Solution: Instant Downloadable
Note: You can download solution instantly after secured payment. We will activate download link manually if pay through PayTM or offline payment and it will take around one working hour.
Question: Ahmedabad Company Ltd. manufactures and sells four types of products under the brand name Ambience, Luxury, Comfort and Lavish. The sales mix in value comprises the following:
The total budgeted sales (100%) are $ 600,000 per month.
The operating costs are:
Ambience 60% of selling price Luxury
Luxury 68% of selling price Comfort
Comfort 80% of selling price Lavish
Lavish 40% of selling price
The fixed costs are $. 159,000 per month.
A) Calculate the breakeven point for the products on an overall basis.
b) It has been proposed to change the sales mix as follows, with the sales per month remaining at $. 6,00,000:
Assuming that this proposal is implemented, calculate the new breakeven point.
Answer: Buy Assignment single Question Answer and you can download solution instantly.