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ABC company produced and sold 50,000 units during 2004 at an average price of Rs. 20 per unit. Variable manufacturing costs were Rs. 11 per
ABC company produced and sold 50,000 units during 2004 at an average price of Rs. 20 per unit. Variable manufacturing costs were Rs. 11 per unit, variable selling costs were Rs. 2 per unit and variable administrative costs were Rs. 4 per unit. Fixed cost amounted to Rs. 80.000 for manufacturing, fixed selling cost is Rs. 30.000 and administrative fixed cost is Rs. 15,000. Required: 1. Compute break even point in sales rupees and in units. Variable manufacturing costs are expected to decrease by 15% in the com& Compute the firm's break even point in sales rupees and in units for the coming re 2-If variable manufacturing costs do decrease by 20%, compute the selling price that ~ yield the same contribution margin ratio in the coming year
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