CleAir Pvt. ltd. started a business of making three varieties of porta

CleAir Pvt. ltd. started a business of making three varieties of portable air purifiers for vehicles - Vincent, Banish, Exclusive. From the following information calculate Breakeven point in units for the company and suggest which variety is most revenue generating. Fixed costs are Rs. 15,20,000.VincentBanishExclusiveSales Price800450600Variable Cost400150200Sales mix50%20%30%

Answer»

	Vincent	Banish	Exclusive
Sales Price	800	450	600
Variable Cost	400	150	200
Contribution	400	300	400
Sales mix	50%	20%	30%
Contribution × sales mix	200	60	120

Weighted Contribution= 200 + 60 + 120 = Rs.380

BEP = Fixed cost/WACM = 1520000/380= 4000 units

In Units:

Vincent = 50% of 4000 = 2000 unit

Banish = 20% of 4000 = 800 unit

Exclusive = 30% of 4000 = 1200 units.

In Rupees:

Vincent = 2000 units x 800 = Rs.1600000

Banish = 800 units x 450 = Rs. 360000

Exclusive = 1200 units X 600 = Rs. 720000

The company is earning more revenue in the sale of Vincent

Discussion

No Comment Found

Related InterviewSolutions

What is meant by coagulation of a colloidal solution? Describe briefly any three methods by which coagulation of lyophobic sols can be carried out.
What is meant by coagulation of a colloidal solution? Name any method by which coagulation of lyophobic sols can be carried out.
Classify the following contraceptives measures into different methods of birth control.(1) Vasectomy(2) tubectomy(3) Saheli(4) Diaphragms(5) Cervical caps(6) Condoms
An object is placed at a distance of 30 cm from a concave lens of focal length 15 cm. List four characteristics (nature, position etc) of the image formed by the lens.
Explain the following: (i) CH3COOH is a weak acid. (ii) Propene undergoes addition reaction. (iii) The gas stoves have inlets for air.
Accumulation of harmful chemicals in our body can be avoided. Explain how this can be achieved ?
State the changes that take place in the uterus when: (i) Implantation of embryo has occurred (ii) Female gamete/egg is not fertilised
A hollow metal sphere of radius 5cm is charged such that the potential on its surface is 10V. What is the potential at the centre of the sphere?
Ms. Raveena Sen is an IT expert and a freelancer. She recently used her skills to access the Admin password for the network server of Super Dooper Technology Ltd. and provided confidential data of the organization to its CEO, informing him about the vulnerability of their network security. Out of the following options (i) to (iv), which one most appropriately defines Ms. Sen? Justify the reason for your chosen option: (i) Hacker (ii) Cracker (iii) Operator (iv) Network Admin
An elevator descends into a mine shaft at the rate of 6 m/min. If the descent starts from 10 above the ground level, how long will it take to reach -350 m?

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment