cost of the product is Rs. 120 per unit and the fixed cost for the year...

 

Transcribed Image Text:

cost of the product is Rs. 120 per unit and the fixed cost for the year is Rs. 96,000. A company produces a single product and sells it at Rs. 200 each. The variable Calculate: (i) P/V ratio. (ii) Sales at break-even point. (iii) Sales units required to earn a target net profit of Rs. 1,20,000. (iv) Sales units required to earn a target net profit of Rs. 1,00,000 after income-tax, assuming income-tax rate to be 50%. (v) Profit at sales of Rs. 7,00,000. LICH cost of the product is Rs. 120 per unit and the fixed cost for the year is Rs. 96,000. A company produces a single product and sells it at Rs. 200 each. The variable Calculate: (i) P/V ratio. (ii) Sales at break-even point. (iii) Sales units required to earn a target net profit of Rs. 1,20,000. (iv) Sales units required to earn a target net profit of Rs. 1,00,000 after income-tax, assuming income-tax rate to be 50%. (v) Profit at sales of Rs. 7,00,000. LICH

Answer rating: 100% (QA)

i The PV ratio can be calculated as follows PV ratio Contribution Sales x 100 where Contribution Sales Variable costs In this case Sales Rs 200 per un... View the full answer