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should be preferred, due to 10.14 Multiple Key Factor - Product Mix Decision M12 Ezee Ltd makes two products, E and Z. All units produced are sold. There is no inventory buildup. Production facilities may be used inter-changeably for both the products. Sales Units are the Limiting Factor. The following information is given: Proposed Increase Z Total Present Level Z 20 Total E 25 E Leontribution / unit 47,500 4,000 Cost Fixed Dept 4 86,4004 200 x 12 = 86,400 NA E Not regd. 20 46,000 bales Units (nos) 3,000 2,000 5,000 or increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the increased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit () z 4001-5000 15 5001-6000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. ii) What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 3 47,500 to be incurred? (Present Product Mix need not be maintained). If you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production? of BF with Present Mix of 3:2 Total roduct 4320 80.6. 721600 28. 7324. 108M E 25 Present Level Z 20 Total E Total Fixed 47 500 ept 4 4004 12 400 Ni gd. Z Proposed Increase contribution / unit Z Cost 46,000 wales Units (nos) 3,000 2,000 5,000 or increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the increased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit) E 4001-5000 20 15 5001-6000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. i) What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 47,500 to be incurred? (Present Product Mix need not be maintained). ii) If you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production? should be preferred, due to 10.14 Multiple Key Factor - Product Mix Decision M12 Ezee Ltd makes two products, E and Z. All units produced are sold. There is no inventory buildup. Production facilities may be used inter-changeably for both the products. Sales Units are the Limiting Factor. The following information is given: Proposed Increase Z Total Present Level Z 20 Total E 25 E Leontribution / unit 47,500 4,000 Cost Fixed Dept 4 86,4004 200 x 12 = 86,400 NA E Not regd. 20 46,000 bales Units (nos) 3,000 2,000 5,000 or increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the increased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit () z 4001-5000 15 5001-6000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. ii) What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 3 47,500 to be incurred? (Present Product Mix need not be maintained). If you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production? of BF with Present Mix of 3:2 Total roduct 4320 80.6. 721600 28. 7324. 108M E 25 Present Level Z 20 Total E Total Fixed 47 500 ept 4 4004 12 400 Ni gd. Z Proposed Increase contribution / unit Z Cost 46,000 wales Units (nos) 3,000 2,000 5,000 or increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the increased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit) E 4001-5000 20 15 5001-6000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. i) What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 47,500 to be incurred? (Present Product Mix need not be maintained). ii) If you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production