Help in decision making

CMA 662 views 1 replies

I need help in the question according to which three products are make by the company namely A B and C. the SP and the variable cost pu, labour hrs pu are given. These products have seperately identifiable fixed cost and a general fixed cost( given). The Question involves finding product mix when

case a) limiting factor- labour hrs

case b) Limiting factor- production demand productA= xxunits, B=yy units, C=tt units 

 

In this question i couldnt understand why in case a) BEP calculated for each seperate unit has fixed cost (general+specific)/contibution pu

 

Replies (1)

what is your doubt exactly. the formula is correct to calculate the BEP in units.


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