Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

A company has a production of 3,00,000units. Variable cost is Rs. 55per unit and fixed cost is Rs. 25 per unit. The company fixes a selling price of Rs. 100. i)Find break even point ii) find profit volume ratio iii) if the selling price is reduced by Rs. 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago