Help in decision making

CA Harsh (CFA level 2 candidate) (33 Points)

18 November 2011  

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