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A Company has a production of 3,00,000 units. Variable Cost is Rs. 55 per unit and fixed cost is Rs. 25 per unit. The Company

A Company has a production of 3,00,000 units. Variable Cost is Rs. 55 per unit and fixed cost is

Rs. 25 per unit. The Company fixes a selling price of Rs 100.

i) What is the Break-Even Point?

ii) What is Profit Volume ratio?

iii) If the Selling price is reduced by 5, how it would affect Break Even Point and P/V ratio?

iv) If the Variable cost is increased by 20%, how it would affect Break Even Point and P/V ratio?

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