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0.9 The two firms, P Ltd. And Q Ltd., sell identical products in the market. Their budgeted profit and loss accounts for the year ending

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0.9 The two firms, P Ltd. And Q Ltd., sell identical products in the market. Their budgeted profit and loss accounts for the year ending on 31st March 2006 are as follows: P Ltd. (in Rs.) Q Ltd. (in Rs.) Sales 200000 200000 Variable cost 160000 140000 Fixed Cost 20000 180000 40000 180000 Net Profit 20000 20000 You are required to calculate (a) BEP and margin of safety for P Ltd. (b) BEP and margin of safety for Q Ltd (c) State which company is better in achieving BEP and margin or safety

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