Question

A Company has a production of 3, 00,000 units. Variable Cost is Rs. 55 per unit and fixed cost is
Rs. 25 per unit. The Company fixes a selling price of Rs 100.
i) What is the Break-Even Point?
ii) What is Profit Volume ratio?
iii) If the Selling price is reduced by ₹ 5, how it would affect Break Even Point and P/V ratio?
iv) If the Variable cost is increased by 20%, how it would affect Break Even Point and P/V ratio?

Answer 1

Answer:

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