Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

a) Gyan limited manufactures and sells four types of products under the brand names A,B,C , and D . The sales mix in value comprises

a) Gyan limited manufactures and sells four types of products under the brand names

A,B,C

, and

D

. The sales mix in value comprises

30%,40%,20%

, and

10%

of

A,B,C

, and

D

respectively. The total budgeted sales are Rs. 60,000 per month. The operating costs are:\ Product

A-60%

of selling price\ Product B

-70%

of selling price\ Product C

-80%

of selling price\ Product D

-70%

of selling price\ Fixed cost Rs. 12,000 per month.\ Calculate the break-even point and percentage of margin of safety for the product on overall basis.

image text in transcribed
Gyan limited manufactures and sells four types of products under the brand names A, B, C, and D. The sales mix in value comprises 30%,40%,20%, and 10% of A,B,C, and D respectively. The total budgeted sales are Rs. 60,000 per month. The operating costs are: Product A60% of selling price Product B - 70% of selling price Product C 80% of selling price Product D - 70% of selling price Fixed cost Rs. 12,000 per month. Calculate the break-even point and percentage of margin of safety for the product on overall basis

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-0078025365

Students also viewed these Accounting questions