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Question1: Crystal Clear Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The
Question1: Crystal Clear Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-cum-filter that only purifies water meant for drinking. The unit that attaches to the faucet is sold for Rs. 1000 has variable cost of Rs 350 . The pitcher-cum-filter sells for Rs. 1200 has variable cost of Rs. 300 . Crystal Clear sells two faucet models for every three pitchers sold. Fixed costs equal Rs.120 lakh. A. What is the breakeven point in unit sales and rupees for each type of filter at the current sales mix? B. Crystal clear is considering buying new production equipment. The new equipment will increase fixed cost by Rs. 20.8 lakh per year and will decrease the variable cost of the faucet and the pitcher units by Rs.50 and Rs.100 respectively. Assuming the same sales mix, how many of each type of filter does Crystal Clear need to sell to break even
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