The image contains a problem involving two products A and B manufactured by X Ltd with the data provided to calculate the price mix for maximum profitability, breakeven point BEP and other financial metrics.
Heres a breakdown of the question:
I. Price Mix for Maximum Profitability
Product A:
Selling price per unit:
Demand: units per month
labour hours per unit
Product B:
Selling price per unit:
Demand: units per month
labour hours per unit
Cost Structure per Unit:
Product A:
Direct material:
Direct labour:
Variable overhead:
Total cost:
Product B:
Direct material:
Direct labour:
Variable overhead:
Total cost:
Fixed overheads: per quarter
Factory capacity: labour hours per month
You are required to compute the best price mix for maximum profitability based on these parameters. Q Answer the following:
X Ltd manufictures and markets products A and the demand in the market of which
fluctuates with the prices quoted. As a result of the deliberations of its recent Sales Cmnference
the following data were agreed upon as a working basis:
labour hours are required to produce product A and labour hours to produce product and
maximum cepacity of the factory is restricted to labour hours per month.
The cost structure per unit of production is as under.
Fixed overheads are Rs per quarter.
You are required to compute the possible combinations and arrive at a proper price mix for
maximum profitability.
II If fixed costs are $ variable costs $ and breakeven point $ find: i
Profitvolume ratio; ii Sales; iii Net profit; iv Margin of safery:
III. From the following data, calculate breakeven point BEP:
If sales are above BEP, determine the net protit.