The budgeted results of ABC Ltd are as follows:
|
Sales of Products |
Amount (in lakhs) |
Variable Costs as % of Sales Value |
|
P |
4.00 |
50% |
|
Q |
3.00 |
60% |
|
R |
6.00 |
70% |
|
S |
2.00 |
55% |
|
T |
8.00 |
80% |
Fixed costs for the period are Rs. 7,60,000.
You are required to:
- Prepare a statement showing the amount of loss expected.
- Recommend a change in the sales volume of each product which will eliminate the expected loss assuming that sale of only one product can be increased at a time.