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Your Company sells 3 products, A, B and C. Details are below: A B C Average monthly units sold 15,000 units Sales price per
Your Company sells 3 products, A, B and C. Details are below: A B C Average monthly units sold 15,000 units Sales price per unit Rs 5,000 5,000 units Rs 6,000 20,000 units Rs 3,000 Variable cost per unit Rs 2,000 Rs 4,000 Rs 1,000 Total Fixed cost = Rs 20,000,000 1. Calculate: 2. i. break-even point for the company in terms of total number of units and sales amount in Rs ii. number of units of each A, B and C at that level Without making further calculations, explain that if fixed cost decreases by 10% what impact would this have on the break-even point?
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