A company sells two products, J and K. The sales mix is 4 units of J and 3 units of K. The contribution margin per unit are ₹40 for J and ₹20 for K. Fixed costs are ₹3,08,000 per month. Compute the individual break-even

CS Executive · Corporate and Management Accounting · PYQS · December 2020
A company sells two products, J and K. The sales mix is 4 units of J and 3 units of K. The contribution margin per unit are ₹40 for J and ₹20 for K. Fixed costs are ₹3,08,000 per month. Compute the individual break-even point of product J and product K :
(A) 800 units and 600 units
(B) 600 units and 800 units
(C) 5600 units and 4200 units
(D) 4200 units and 5600 units

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Management Accounting

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