A Company budgets for a production of 150000 units. The variable cost per unit is Rs.14...
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A Company budgets for a production of 150000 units. The variable cost per unit is Rs.14 and fixed cost per unit is Rs.2 per unit. The company fixes the selling price to fetch a profit of 15% on cost. Required, What is the break-even point? B] What is the profit/volume ratio? C] If the selling price is reduced by 5%. how does the revised selling price affects the Break Even Point and the Profit/Volume Ratio? D] If profit increase of 10% is desired more than the budget, what should be the sales at the reduced price? A Company budgets for a production of 150000 units. The variable cost per unit is Rs.14 and fixed cost per unit is Rs.2 per unit. The company fixes the selling price to fetch a profit of 15% on cost. Required, What is the break-even point? B] What is the profit/volume ratio? C] If the selling price is reduced by 5%. how does the revised selling price affects the Break Even Point and the Profit/Volume Ratio? D] If profit increase of 10% is desired more than the budget, what should be the sales at the reduced price?
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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