Fixed costs are Rs. 80,000; and at the present volume of 1,000 customers, variable costs are Rs.
Question:
Fixed costs are Rs. 80,000; and at the present volume of 1,000 customers, variable costs are Rs. 25,000 and profits are Rs. 20,000.
(a) What is the break-even point volume?
(b) Assuming that fixed costs remain constant, how many additional customers will be required for the agency to increase profit by Rs.1000?
[Ans.
(a) 800 units
(b) 10 customers]
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