On investigation it was found that variable costs in XYZ Ltd. is 80 percent of the selling
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Question:
On investigation it was found that variable costs in XYZ Ltd. is 80 percent of the selling price. If the
fixed expenses are Rs.10,000 calculate the break-even sales of the company.
Another firm, IMN company Ltd., having the same amount of fixed expenses, has its break even point at
a lower figure than that of XYZ Ltd. Comment on the causes.
Expert Answer:
To calculate the breakeven sales for XYZ Ltd we first need to find the contribution margin ratio The ... View the full answer
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