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:

Variable costs

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:

  1. To compute the BEP for the products on an overall basis.
  2. Is planning a change in the sales mix as follows desirable?

(The total sales remain unaffected.)