MINI CASE NUMBER III Using CYP Concepts in "Mad Product Environment ME ABXY Limited manufactures...
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MINI CASE NUMBER III Using CYP Concepts in "Mad Product Environment ME ABXY Limited manufactures and sells two products, namely, "AB" and X. Both of these products enjoy reasonable demand in the market place although the concerned company is not in a position to predict such demand with any degree of reasonable accuracy. The selling prices per unit of "AB" and "XY" aro Rs 1800 and Rs 2100 respectively. Variable Cost per unit associated with producing and seling these products are Rs 900 and Rs 1800 respectively. Annual fixed production, administrative and selling expenses of Mis ABXY Limited amount to Rs 88,000. The concerned company is contemplating the following two selling strategies it may be noted that the packaging cost involved in respect of the following two strategies of selling options is extremely negligible and hence, may be ignored). Selling Strategy Sell by making small packets comprising 2 units of "AB" and 3 units of "XY" Selling Strategy Sell by making small packets comprising 1 unit of "AB" and 2 units of "XY" As the management accountant of the said company, which of the above two selling strategies would you recommend and WHY
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