account

A Limited manufactures three different products and the following information has been collected from the books of accounts: Products S T U 25% 35% 40% Sales Mix Selling Price 600 *800 400 Variable Cost 300 400 *240 Total Fixed Costs 36,00,000 Total Sales 1,20,00,000 The company has currently under discussion, a proposal to discontinue the manufacture of Product U and replace it with Product M, when the following results are anticipated: Products S T M 40% 35% 25% Sales Mix Selling Price 600 800 600 300 400 300 Variable Cost 36,00,000 Total Fixed Costs 1,28,00,000 Total Sales Required: (i) COMPUTE the PV ratio, total contribution, profit and Break-even sales for the existing product mix. (ii) COMPUTE the PV ratio, total contribution, profit and Break-even sales for the proposed product mix