6. You are required to compute P/N Ratio, B.E.P and Margin of Safety from the following
data:
I
Sales (1,00,000 units)
Variable cost
Fixed cost
Rs.2,00,000
Rs. 80,000
Rs.40,000
2
Also evaluate the effect of (a) 20% increase in variable costs and (b) 20% increase in
quantity sold on the above mentioned three measures.
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