Change in product structure

"A"

New Sales Volume (units)

Unit Sales Price
Total Sales Revenue
Variable Cost Per Unit
Total Variable Cost
Total Fixed Cost
Profit
Ratios:
Variable Cost To Sales
Unit contribution To Sales
Utilization of Capacity

400000
10
4000000
8.25
3300000
960000
-260000

Contribution Per unit

pv ratio
B.E.P

FOR B.E.P PLANE

"B"

"C"
400000
9
3600000
4.125
1650000
1560000
390000

950000
4.8
4560000
1.65
1567500
1170000
1822500

0.825 0.458333333
0.175 0.541666667
20%
20%

0.34375
0.65625
47.50%

1.75
17.5

4.875
54.16

3.15
65.62

--- LET X1 be the no. of units of A

Let x2 be the no. of units of B
Let x3 be the no. of units of C
1.75X1 + 4.875X2 + 3.15X3 = 3690000

x1

x2

x3

1928571
1748571
1568571
1388571

692308
627692
563077
498460

1016667
861905
707143
552381

3375000

3375000

320251

3637546
3238168
2838791
2439412

"Aggregate"
1750000
6.948571429
12160000
3.724285714
6517500
3690000
1952500

5485714
0.175

0.535978618
0.464021382
87.50%

3.26
46.9
78678.03838

0
3689998.25
2000000
1500000

1500000-2000000
1000000-1500000

1000000

500000-1000000

500000

Series3
Series2

0
1

Series1
4

0-500000

1500000-2000000
1000000-1500000
500000-1000000
0-500000

A
contribution Per unit

960000

B
1.75

1560000

4.875

1170000

1.75x+4.875y+3.15z=

a
C

aggregate

pv ratio

3.15

a
break even point

1.75x+4.875y+3.15z= 3690000

b
5485714

b
c
0.175 0.541667 0.65625
17.5
54.16
65.62

c
2880000

1782857

x1

x2
0
0
200

x3
0
100
0

50
0
0

200
150

150-200
100-150

100
Series3
50
Series2

0
1
2

Series1
3

50-100
0-50

150-200
100-150
50-100
0-50