Question

fixed cost 8000,profit earned 2000 and break -even sales40000. the sales will be​

Answer 1

Answer:

SALES = RS 50000

Explanation:

BREAK EVEN POINT = FIXED COST /PV RATIO

IE,                   40000 = 8000/ PV RATIO

SO, PV RATIO =  8000 / 40000* 100 = 20%

SALES = CONTIBUTION /  PV RATIO

CONTRIBUTION = PROFIT + FIXED CSOT

                            =  2000 + 8000 = 10000

SALES = 10000 / 20%  = 50000