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3. Max. Tvres Ltd. is an important nlayee in Indian.tyre industry. It has set up a new plant to produce tyres for SUVs. Following cost
3. Max. Tvres Ltd. is an important nlayee in Indian.tyre industry. It has set up a new plant to produce tyres for SUVs. Following cost data is available about this new plant and this product: i. Selling price per unit - Rs. 8,000 ii. Variable cost per unit - Rs. 4,800 iii. Fixed cost - Rs. 2,20,00,000 Calculate the following for the company: a) P/V ratio b) How many tyres the company must produce and sell so that it achieves break-even? c) Break Even Point in rupees. d) Margin of Safety and MoS Ratio if the company generates sales revenue of Rs. 7,80,00,000. e) Sales required to earn a profit of Rs. 80,00,000 f) Profit earned by the company if it generates sales of Rs. 7, 50,00,000. g) New Break Even Point if the management of the company decides to reduce the selling price is by 10% due to increased competition in the market
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