20./(1) From the following particulars calculate the P/ ratio, Break-even sales and fixed
costs.
Profit 2,000 which represents 10% of sales. Margin of safety = 10,000.
(2) A company produces single product which sells for 20 per unit. Variable cost is 7 15
per unit and Fixed overhead for the year is 6,30,000.
Required:
(a) Calculate sales value needed to earn a profit of 10% on sales.
(b) Calculate sales price per unit to bring BEP down to 1,20,000 units.
(c) Calculate margin of safety sales if profit is 60,000.
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