The budgeted results of ABC Ltd are as shown in
Table 5.20 Budget results of ABC Ltd
| Sales | Amount (in INR million) | Variable cost as percentage of sales volume |
| A | 1.1 | 70% |
| B | 0.80 | 40% |
| C | 1.4 | 75% |
| D | 0.60 | 90% |
| E | 0.90 | 75% |
| 4.8 | 70% |
If the fixed costs are INR 12,00,000 then calculate the amount of loss that is expected. Do you see any change in the sales volume of each product, which will reduce the expected loss? Assume that sale of only one product can be increased at a time.
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