POR Ltd. has furnished the following data for the two years: Sales Profit/Volume Ratio (P/V ratio)...

 

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POR Ltd. has furnished the following data for the two years: Sales Profit/Volume Ratio (P/V ratio) Margin of Safety sales as a % of total sales 2021-22 7800,000 50% 40% Sales for 2022-23 in Value, Fixed cost for 2022-23 in Value, (0) Break-even sales for 2022-23 in Value. 2022-23 ? 37.5% 21.875% There has been substantial savings in the fixed cost in the year 2022-23 due to the restructuring process. The company could maintain its sales quantity level of 2021- 22 in 2022-23 by reducing selling price. You are required to CALCULATE the following: POR Ltd. has furnished the following data for the two years: Sales Profit/Volume Ratio (P/V ratio) Margin of Safety sales as a % of total sales 2021-22 7800,000 50% 40% Sales for 2022-23 in Value, Fixed cost for 2022-23 in Value, (0) Break-even sales for 2022-23 in Value. 2022-23 ? 37.5% 21.875% There has been substantial savings in the fixed cost in the year 2022-23 due to the restructuring process. The company could maintain its sales quantity level of 2021- 22 in 2022-23 by reducing selling price. You are required to CALCULATE the following:

Answer rating: 100% (QA)

1 Sales for 202223 in Value To calculate the sales for 202223 we need to use the ProfitVolume Ratio ... View the full answer