Essay About Product Lines P1 And P2

Sai Sravan Ltd Marketing
Q.1 Sai Sravan Ltd is dealing in 4 product lines P1, P2, P3, P4. The details regarding unit cost and selling prices are as under:P1P2P3P4Direct MaterialsDirect LabourVariable OverheadsFixed CostSelling Price889  6      401482020        70        20201415         8020201421       100Sales volume for the month of July and August of 2014 are as follows:P1P2P3P4JulyAugust2000035000200001600020000  500020000  5000    (A) Find out the monthly profits.     (B) The P/V Ratio and Break Even points under the two plans referred above.     (C)        If there is possibility of increasing sale units by 12000 (of any 1 product). Which product line should be focused? (Compute resultant incremental profit)     (D) If raw material is in short supply and any one of the product line need to be closed, which one should be closed. The same raw material will be diverted to another product. (Compute resultant incremental profit)Q.2  Devendra Ltd  The budgeted data  for the year is as follows:                                                           Rs. per unit                  Rs.Direct Materials        30