Question

A single product company sells its product at 60 per unit
In 2019, the company operated at a margin of safety of 40%. The fixed costs amounted t0 3,60,000 and the variable cost ratio to sales was 80%
In 2020, it is estimated that variable cost will go up by 10% and the fixed cost will increase by 5%.
1: Find the selling price required to be fixed in 2020 to earn the same p/v ratio as in 2019
(2) Assuming the same selling price of 60 per unit in 2020, find the number ofunits required to be produced and sold to earn the same profit as in 2019. (Ans: (1) 3 66 p.u.; (ii) 85,834 units/​

Answer 1

Answer:

Selling price rs 66 per unit

No. Of units to be produced is 85833

Explanation:

Its a good sum

Answer 2

Explanation:

Selling price required= Rs 66

Required Sales units = 85833 units