Sale of product amounts to 200 units per month at Rs. 10 per unit. Fixed overhead is Rs. 400 per month and Variable Cost is Rs. 6 per unit. There is a proposal to reduce the Selling Price by 10%.

Calculate: (a) Present P/V Ratio and BEP in units; (b) Future P/V Ratio and BEP in units; and (c) How many units to be sold to earn the present total profit?

Answer rating: 100% (QA)

To calculate the present and future PV ProfitVolume ratios as well as the breakeven point in units w... View the full answer