The budgeted results of R Ltd as follows: Product A: sales =2,50,000, PV ratio=50% Product B: sales =4,00,000, PV ratio=40% Product C: sales =6,00,000, PV ratio=30% Overheads-fixed is 5,02,200 Management is not happy with results and asked to prepare a detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same sales mix which will eliminate the loss.
The budgeted results of R Ltd as follows: Product A: sales =2,50,000, PV ratio=50% Product B: sales =4,00,000, PV ratio=40% Product C: sales =6,00,000, PV ratio=30% Overheads-fixed is 5,02,200 Management is not happy with results and asked to prepare a detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same sales mix which will eliminate the loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The budgeted results of R Ltd as follows:
Product A: sales =2,50,000, PV ratio=50%
Product B: sales =4,00,000, PV ratio=40%
Product C: sales =6,00,000, PV ratio=30%
Overheads-fixed is 5,02,200
Management is not happy with results and asked to prepare a detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same sales mix which will eliminate the loss.
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