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The budgeted statement by product lines of Adarsh Multiproducts Ltd for 2020 is as follows Particulars Product A(Rs.) Product B(Rs.) Product C(Rs.) Sales 2,00,000 5,00,000
The budgeted statement by product lines of Adarsh Multiproducts Ltd for 2020 is as follows Particulars Product A(Rs.) Product B(Rs.) Product C(Rs.) Sales 2,00,000 5,00,000 3,00,000 Variable expense Cost goods sold 1,10,000 2,80,000 1,35,000 Selling Expenses 20,000 90,000 45,000 Fixed Expenses: Overheads 30,000 75,000 45,000 Administration Expenses 12,000 30,000 18,000 Income before Tax 28,000 25,000 57,000 Income Tax @40% 11,200 10,000 22,000 Net Income 16,800 15,000 34,200 All the products are manufactured with the same facilities under common administrative control. Fixed expenses are allocated among the products in proportion to their budgeted sales value. Required: (a) To compute the budgeted break-even point of the company as a whole from the data provided. (b) To draft an income statement product wise to ascertain the effect on budgeted income if half of the budgeted sales value of product B were shifted to product A and C in equal rupee amounts so that the total budgeted sales in rupees remain the same. (c) To show the effect of the shift suggested in(b) above on the budgeted break-even-point of the whole company. plz solve it step by step and plz dont use any software. plz use normal methods
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