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ABN Ltd. provides following information. Budgeted production of 150,000 units. Variable Cost Rs.14 p/u FC Rs.2 p/u The company fixes its SP to faith of
ABN Ltd. provides following information.
Budgeted production of 150,000 units.
Variable Cost Rs.14 p/u
FC Rs.2 p/u
The company fixes its SP to faith of profit of 15% on cost.
You have to calculate -
1) P/V Ratio
2) BEP (Rs. & Units)
3) If SP is reduced by 5%, how it will affect P/V Ration & BEP (Rs. & Units).
4) If profit increase of 10% more than budget is desired, what should be the
sale at reduced price?
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