Ruby Industries Ltd. furnish the following information for the year 2018.
|Variable Cost||(Rs.) 1,00,000|
|Fixed Cost||(Rs.) 50,000|
(1) Find: PN Ratio, BEP (Sales) and Margin of Safety.
(2) Calculate the effect of the following :
(a) 10% increase in Selling:Price,
(b) 5% Decrease in Variable Cost, and
( c) 10% Decrease in Fixed Cost.
A company has 3 alternative choices of Product Mix. It produces 2 Products, A and B. It can produce either: (a) 200 units of A and 400 units of B, (b) 300 units of A and 300 units of B, (c) 400 units of A and 200 units of B.
|(1) Selling Price||400||300|
|(2) Variable Cost||320||240|
|(3) Fixed Cost||(Rs.)16,000|
You have to decide the best profitable mix.