prepare a statement showing the amount of loss expected 608780

The budgeted results of ABC Ltd are as follows:

Sales of Products

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Amount (in lakhs)

Variable Costs as % of Sales Value

P

4.00

50%

Q

3.00

60%

R

6.00

70%

S

2.00

55%

T

8.00

80%

Fixed costs for the period are Rs. 7,60,000.

You are required to:

  1. Prepare a statement showing the amount of loss expected.
  2. Recommend a change in the sales volume of each product which will eliminate the expected loss assuming that sale of only one product can be increased at a time.
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