Joy Ltd manufactures and sells four types of products under brand names Q, R S and T. The sales mix comprises respectively. The total budgeted sales (100%) are Rs. 2,00,000 per month. Operating costs are:
Product Q–60% of selling price.
Product R–68% of selling price.
Product S–80% of selling price.
Product T–40% of selling price.
Fixed cost–Rs. 58,800.
You are required to find the following:
- To compute the BEP for the products on an overall basis.
- Is planning a change in the sales mix as follows desirable?
(The total sales remain unaffected.)