Trolly Ltd achieved the following results in the year just ended:

	Rs.
Sales	600,000
Less variable cost of sales	300,000
Contribution	300,000
Less fixed costs	250,000
Profit	50,000

In planning for next year, the company’s management estimates that variable costs will rise by 10% per unit and fixed costs will rise by Rs. 27,500. If there is to be no increase in unit sales prices, so that any extra revenue must be earned by increase in sales volume, what amount of sales would be needed next year to earn a profit of Rs. 60,000?

Answer rating: 100% (QA)

Revised Variable Expenses 300000 x 110 330000 Revised Contribution Mar... View the full answer