Break-even Point (Tables) Homework Help

Break-even Point

TABLES

Break-even Point

Break-even Point

Increasing the mix of high P/V products ( Y from 30 to 40 per cent, Z from 20 to 30 per cent) and decreasing the mix of a low P/V product (X from 50 to 30 per cent), the company can increase its overall profitability. In fact, it can further augment its total profits, if it can make and the market can absorb more quantities of Y and Z, say Rs 1 lakh each.

Break-even Point

Break-even Point 2

From me above, it can be generalized that, other things being equal, management should stress products with higher contribution margins. For individual product line income statements, fixed costs should not be allocated or apportioned.

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