Question
During the last quarter a company had a bad sales and it's budgeted results are as given below: Product A: sales =2,50,000, PV ratio=50% Product
During the last quarter a company had a bad sales and it's budgeted results are as given below:
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
Director of the company wants to identify the cause and have 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 level of sales mix which will ultimately results in eliminating the loss.
Step by Step Solution
3.52 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Calculation of the contribution margin for each product Product A Contribution Sales PV ratio 250000 ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
