The budgeted results for Joseph & Co. Ltd include the following
|
Product |
Sales (Rs) |
Variable cost as percentage of sales value |
|
A |
50,00,000 |
60 |
|
B |
40,00,000 |
50 |
|
C |
80,00,000 |
65 |
|
D |
30,00,000 |
85 |
|
E |
44,00,000 |
80 |
|
2,44,00,000 |
65.77 |
Fixed overheads for the period is Rs 87,00,000. 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. Assume that the sale of only one product can be increased at a time.