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A company is considering a reduction in the price of its product by 10% because it is felt that such a step may lead to

A company is considering a reduction in the price of its product by 10% because it is felt that such a step may lead to a greater volume of sales. It is anticipated that there will be no change in total fixed costs or variable costs per unit. The directors wish to maintain profit at the present level. 220 You are given the following information: Sales (15,000 Units) Rs.3,00,000 Variable Cost Rs.13 Per Unit Fixed Cost Rs.60,000 From the above information, calculate P/V ratio and the amount of sales required to maintain profit at the present level after reduction of selling price by 10%.

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