Question

Company A and Company B both under the same management make and sell the same type of

product. Their budgeted profit and loss accounts for the year ending 2018 are as follows:

Particulars Company A Company B

Sales 3,00,000 3,00,000

Less: Variable cost 2,40,000 2,00,000

Less: Fixed cost 30,000 2,70,000 70,000 2,70,000

Profit 30,000 30,000

From the above information State which company is likely to earn greater profits in conditions of

i. Heavy Demand for the product

ii. Low demand for the product​

Answer 1

Answer:

I don't no flowe me thanks