LS2474: The Rohan Company has three products- X, Y and Z-having contribution margins of Rs.2, Rs. 3 and Rs.6, respectively .the resident of the Company is planning to sell 2,00,000 units in the forthcoming period, consisting of 80,000 units of X,1,00,000 Y and 20,000 Z. The Company’s fixed costs for the period are Rs. 4,06,000.

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Question: The Rohan Company has three products- X, Y and Z-having contribution margins of Rs.2, Rs. 3 and Rs.6, respectively .the resident of the Company is planning to sell 2,00,000 units in the forthcoming period, consisting of 80,000 units of X,1,00,000 Y and 20,000 Z. The Company’s fixed costs for the period are Rs. 4,06,000.

Required:

(i)What is company’s break-even point in units, assuming that the given sales mix is maintained?

(ii)What would be the net income if 80,000 units of X 80,000 units Y and 40,000 units of Z were sold? What would be new break-even point if these units were sold in the next period?

 


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