Question:
The budgeted results for Joseph & Co. Ltd include the following
|
Product
|
Sales (Rs)
|
Variable cost as percentage of sales value
|
|
A
|
50,00,000
|
60
|
|
B
|
40,00,000
|
50
|
|
C
|
80,00,000
|
65
|
|
D
|
30,00,000
|
85
|
|
E
|
44,00,000
|
80
|
|
2,44,00,000
|
65.77
|
Fixed overheads for the period is Rs 87,00,000. You are required to
1. Prepare a statement showing the amount of loss expected
2. Recommend a change in the sales volume of each product, which will eliminate the expected loss. Assume that the sale of only one product can be increased at a time.