PROBLEM 20 Assume that ABC Co. Ltd. produces and sells three products with the following data: Product A B C

Sales (Rs.) 60,000 120,000 1,20,000 Variable Cost (Rs.) 40,000 80,000 75,000 Overall Break-even point in Rs. = Rs. 500,000. Required: 1. Joint fixed cost. 2. Break-even sales for each product. 3. Required sales volume for earning a profit of Rs. 90,125 (maintaining the original mix). 4. New Break-even point if fixed cost increases by Rs. 66,500 (in original mix). [Ans.: (1) Rs. 1,75,000 (2) Rs. 1,00,000; Rs. 2,00,000; Rs. 2,00,000 (3) Rs. 7,57,500 (4) Rs. 6,90,000]