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As per the present arrangements, if the production of any product stops, the remaining two products increases their production by 50% The directors decided to
As per the present arrangements, if the production of any product stops, the remaining two products increases their production by 50% The directors decided to stop the production of C product and continue A,B products. Do you agree with this decision? Statement showing profitability Comparison Particulars Product Products Product A B C 10,000 5,000 8,000 Variable costs: 1,00,000 40,000 72,000 Materials Wages 60,000 35,000 48,000 Variable overheads 40,000 25,000 24,000 2,00,000 1,00,000 1,44,000 40,000 25,000 Sales 3,20,00 1,50,000 2,08,000 Contribution 1,20,000 50,000 64,000 Fixed costs 30,000 15,000 16,000 profit 90,000 35,000 48,000
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