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PROBLEM 20 Assume that ABC Co. Ltd. produces and sells three products with the following data: Product A B Sales (Rs.) 60,000 120,000 1.20,000 Variable
PROBLEM 20 Assume that ABC Co. Ltd. produces and sells three products with the following data: Product A B 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)
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