Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also suggest that whether company should change the sales mix or continue with the existing: MNTotal Sales (in Rs)Existing Sales mix(Rs.) 80,0001,00,00040,00020,0002,40,000Variable Cost (in Rs)48,00068,00032,0008,0001,56,000Fixed Cost (in Rs)58,800Proposed Sales Mix(Rs.)60,00088,00080,00012,0002,40,000

Sales mix should be such that the total contribution can be maximised. Which can be done by giving…

Answered: Calculate the effect on profit of a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and
also suggest that whether company should change the sales mix or continue with the existing:

M
N
Total Sales (in Rs)
Existing Sales mix(Rs.) 80,000
1,00,000
40,000
20,000
2,40,000
Variable Cost (in Rs)
48,000
68,000
32,000
8,000
1,56,000
Fixed Cost (in Rs)
58,800
Proposed Sales Mix(Rs.)60,000
88,000
80,000
12,000
2,40,000

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