Question: Example 4 - Multi - Product BJS Ltd produces and sells the following three products: Product X Y Z Selling price per unit Rs. 16
Example 4 - Multi - Product BJS Ltd produces and sells the following three products: Product X Y Z Selling price per unit Rs. 16 Rs. 20 Rs. 10 Variable cost per unit Rs. 5 Rs. 15 Rs. 7 Contribution per unit Rs. 11 Rs. 5 Rs. 3 The company expects the fixed costs to be Rs. 300,000 for the coming year. Assume that sales arise throughout the year in a constant mix.Required: (a) Calculate the weighted average C/S ratio the products. (b) Calculate the break -even sales revenue required. (c) Calculate the amount of sales revenue required to generate a profit of Rs. 600,000. (d) Draw a multi-product profit- volume chart assuming the budget is achieved
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