A producer knows that his fixed cost is Rs 4000 and variable cos per unit is Rs 6 per unit and sale price is Rs 10 per unit but recently Government imposes taxes @10% selling price but manufacturer is unable to increase his selling price due to high competition. Under these circumstances his breakeven sales will increase / (decrease) by:
Answers
Answered by
1
Answer:
I hope this answer you have make brainliest please like and star
Step-by-step explanation:
For an example:
Variable costs per unit: Rs. 400 Sale price per unit: Rs. 600 Desired profits: Rs. 4,00,000 Total fixed costs: Rs. 10,00,000 First we need to calculate the break-even point per unit, so we will divide the Rs.10,00,000 of fixed costs by the Rs. 200 which is the contribution per unit (Rs. 600 – Rs. 200). Break-Even Point = Rs. 10,00,000/ Rs. 200 = 5000 units Next, this number of units can be shown in rupees by multiplying the 5,000 units with the selling price of Rs. 600 per unit. We get Break-Even Sales at 5000 units x Rs. 600 = Rs. 30,00,000. (Break-even point in rupees)
Similar questions