The Budgeted results of R Ltd as follows: Product A: Sales=2,50,000, PV ratio=50% Product B: Sales=4,00,000, PV
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Question:
The Budgeted results of R Ltd as follows:
Product A: Sales=2,50,000, PV ratio=50%
Product B: Sales=4,00,000, PV ratio=40%
Product C: Sales=6,00,000, PV ratio=30%
Overheads-fixed at 5,02,200
Management is not happy with results and asked about detailed statement of amount of loss and recommendation of sales in each of the products as well in total sales while maintaining same salesmix which will eliminate the loss.
Expert Answer:
Lets break down the problem step by step to find the amount of loss and make recommendations for sales in each product to eliminate the loss while mai... View the full answer
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