Question

X Ltd. Provides you the following data:Selling Price per unit Rs.20Variable Cost per unit Rs.12Units Sold 6,000 unitsFixed Costs Rs.40,000 It is proposed to reduce the selling price by 20%. Calculate (a) New P/V Ratio, (b) New Break Even Point, (c) Additional sales required to obtain the same amount of profit as before.
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Answer 1

Answer:

• a) New P/V Ratio,
• (b) New Break Even Point,
• (c) Additional sales required to obtain the same amount of profit as before.