5. The following are obtained from the records
of a factory :
Sales (4000 @ 25 each)
Variable cost
1,00,000
72,000
16,800
Fixed expenses
Calculate (a) P/V ratio, (b) break-even points
in , (c) margin of safety. It is proposed to
reduce the selling price by 20%. What extra
units should be sold to obtain the same
amount of profit?
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Answer:
1,00,000
Explanation:
Fixed expenses
Calculate (a) P/V ratio, (b) break-even points
in , (c) margin of safety. It is proposed to
reduce the selling price by 20%. What extra
units should be sold to obtain the same
amount of profit?
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