Question

a company produces and sell 100 units of a per month at rupees 30 marginal cost per unit is rs 12 and fixed cost are rs300 per month it is proposed to reduce the selling price by 20% find the additional sale required to earn the same profit as beforwe​

Answer 1

Answer:

We know that S – V = F + P OR S(S – V)/S = F + P

B.E.S. x P/V Ratio = F (Value of P is zero at BE Sales) OR P/V Ratio = F/BES

Putting the value,

P/V Ratio = 40,000/80,000 = 50/100 OR 50%

b. Sales.

We know that Sales x P/V Ratio = F+ P OR Sales x P/V Ratio = Contribution

OR Sales = Contribution/P/V Ratio

So, = (40,000 + 20,000)/50/100

= (60,000 x 100)/50

=Rs.1, 20,000

c. Margin of Safety.

Margin of Safety = Sales – B.E.P Sal

Explanation:

Answer 2

Answer:

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Explanation:

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