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Question 31 The Lee Company has three product lines of pens. High Glow, Smooth Word and Perfect Print with contribution margins of Rs. 4, Rs.
Question 31 The Lee Company has three product lines of pens. High Glow, Smooth Word and Perfect Print with contribution margins of Rs. 4, Rs. 5 and Rs. 6 respectively. The Marketing Manager foresees sales of 1,00,000 pens in the coming period, consisting of 60,000 pens of High Glow, 48,000 pens of Smooth Word and 12,000 pens of Perfect Print. The company's fixed costs for the period are Rs. 2,84,400. 1. What is the company's breakeven point in pens, assuming that the given sales mix is maintained? 2. If the sales mix is maintained, what is the total contribution, Operating Income & Margin of Safety (in Value) when in total 1,20,000 pens are sold
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