The budgeted results of Best Gases Limited are as under: Product Sale value (Rs.) 1,250,000 2,000,000...
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The budgeted results of Best Gases Limited are as under: Product Sale value (Rs.) 1,250,000 2,000,000 3.000.000 PV ratio % 50 40 30 Oxygen gas Nitrogen gas Acetylene gas Fixed overheads for the period are Rs 2,511,000. The management is worried about the results. Required: Prepare a statement showing amount of loss, if any being incurred at present and recommend a change in the sale value of each product as well as the total sale value maintaining the same sale-mix which will eliminate the said loss. The budgeted results of Best Gases Limited are as under: Product Sale value (Rs.) 1,250,000 2,000,000 3.000.000 PV ratio % 50 40 30 Oxygen gas Nitrogen gas Acetylene gas Fixed overheads for the period are Rs 2,511,000. The management is worried about the results. Required: Prepare a statement showing amount of loss, if any being incurred at present and recommend a change in the sale value of each product as well as the total sale value maintaining the same sale-mix which will eliminate the said loss.
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