Use a break-even [Ans. 1,00,000] Ex. 19. A factory manufactures two products 'A' and 'B' at the annual rate of 5,000 and 3,000 units respectively. In terms of plant capacity 2 units of product 'A' = 1 unit of product 'B' Product 'A' gives a profit-volume ratio of 1.50 but a loss of 2,000 is incurred. Product 'B' has a fixed cost of 8,000. The net profit of the plant is * 3,000. (a) What is the P/V ratio of product 'B' ? (b) What is the P/V ratio of whole plant in terms of 'A' ? (c) If the output of product 'A' is pushed up to the break-even point to avoid a loss but at the expense of the volume of product 'B' find the net change in the profit. (d) Draw the profit-volume chart. [Ans. (a) 4.33 per unit; (b) 1.86 per unit; (c) 2,106] * component, the same is