Following information is related to sales mix of Product A, B and C.
| Product | A (Rs) | B (Rs) | C (Rs) |
| Sales Price Per Unit | 15 | 21 | 36 |
| Variable Cost Per Unit | 9 | 14 | 19 |
| Sales Mix Percentage | 20% | 20% | 60% |
Total Fixed Cost= Rs 40,000
What will be the break even point in rupees?
Answer & explanation
Correct answer: option 4
| Product | A (Rs) | B (Rs) | C (Rs) |
| Sales Price Per Unit | 15 | 21 | 36 |
| Variable Cost Per Unit | 9 | 14 | 19 |
| Sales Mix Percentage | 20% | 20% | 60% |
| Product Units at Break Even Point | 625 units | 625 units | 1,875 units |
| Product sales in Rs | 9,375 | 13,125 | 67,500 |
Break Even point in rupees= 9,375+13,125+67,500=90,000