Question

selling price per unit rs 20
variable cost per unit rs 14
total fixed cost rs 120000
find out

1. profit volume ratio
2. break even point
3. profit on sale of rs 500000
4. sales to earn a frofit of rs. 90000

Answer 1

Answer:

This can be answered by finding the number of units sold or the sales dollar amount.

Required number of units sold: Profit = Revenues – Variable Costs – Fixed Costs. $20 = (Units Sold X $5) – (Units Sold X $3) – $30. ...

Required sales dollar amount. Profit $ = sales $ – Variable Costs $ – Fixed Costs $