Question

You are given the following data:
Fixed expanses 4,000
Break- even point 10,000
Calculate
1- PV ratio
2- profit when sale are 20,000
3- new break-even point if selling price is reduced by 20%

Answer 1

1) 6000/10000* 100 = 60%
2) 20000-10000=10000
3) 10000-2000= 8000