From The Following Data Calculate (i)P/V Ratio (ii)Profit When Sales Are Rs.20,000 And (iii) The New Break-even Point, If The Selling Price Is Reduced By 20%- Fixed Expenses Rs.4,000/- Break-even Point- Rs.10,000/-?

1

1 Answers

Anonymous Profile
Anonymous answered
P/V Ratio Contribution/Sales*100

Contribution Sales - Variable Cost

BEP = Fixed Cost/Contribution*Sales

    10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000

Contribution 20000-8000
Contribution 12000

P/V Ratio 12000/20000*100
P/V Ratio 60

Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000

IF selling price reduced by 20%, New BEP

Sales 20000*20/100 16000

BEP 4000/12000*16000

5333.333333

Answer Question

Anonymous