Question

. Price structure of a Pen made by
A ltd. is follows
materials R 60/unit
labour R. 60 lunit
Variable overhead R.60/ unit
fixed cost Rs.50/unit
Profit Rs. 50 /unt
(This is based on 100000 unit per
annum)
The company expect that due to
competition they will have to
reduce the selling price but
they want to keep the Total
profit Intake what lend of
production will have to be
reached to get the same ant
of profilt it -
(a) The selling price is redes so
by 10%
(b) If the selling price is
reduced by 20%​

Answer 1

Answer:

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