XYZ Ltd. manufactures three products X, Y and Z. The Sales Value Mix Ratio of these products are 20%, 30% and 50% respectively. The corresponding Variable Cost to Sales Ratio is 50%, 30% and 20%. The total fixed costs ar

CS Executive · Corporate and Management Accounting · PYQS · December 2020
XYZ Ltd. manufactures three products X, Y and Z. The Sales Value Mix Ratio of these products are 20%, 30% and 50% respectively. The corresponding Variable Cost to Sales Ratio is 50%, 30% and 20%. The total fixed costs are ₹35,500. Calculate Overall Break Even Point (in Value) :
(A) ₹50,000
(B) ₹60,000
(C) ₹71,000
(D) None of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Management Accounting

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