sir in cost volume profit analysis of 2nd lecture,I did not understand lecture from 32:42. we were selling products according to C/s ratio, so we have to sell P 1st. then, you again calculate BEP if P is sold first. so, what is the difference here either we sell by C/s ratio rank or we sell P 1st? after all in both cases we were selling P first . why you again showed calculation of BEP revenue of 21052?
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11y ago#1In first first part of the question (b), (c), and (d) ) we are told that we are keeping the mix of production unchanged (so not selling P first - always selling a mix of the three products).
In the second part of the question ( on the next page of the lecture notes) we are told to assume that we produce in the order of their CS ratios i.e. P first because it has the highest CS ratio. Therefore we are able to reach breakeven sooner.
thank u so much sir :)
11y ago#3You are very welcome :-)
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