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asap LTD & R LTD, sell identical products in Particulars Sales (Rs. Less: Variable Cost Contribution (Rs. Less: Fixed Cost (Rs. B eted Profits Rs.
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LTD & R LTD, sell identical products in Particulars Sales (Rs. Less: Variable Cost Contribution (Rs. Less: Fixed Cost (Rs. B eted Profits Rs. Calculate n g [Maximum Marks 10) markets. Their budgeted income statement for the year 2019-2020 are as follows: p ltd 10000000 8000000 2000000 800000 1200000 R ltd 10000000 3000000 7000000 ssooooo 1200000 a.Calculate the Break-Even Point each company. Why the break-even points Of both the companies are so different though they sell identical products and have same topline and Bottomline. Explain? (3 Marks) b. Which company will earn more when : (i) Heavy Demands (Assume a increase); (li) Low demands (Assume a 20% decrease) & Why? (1+1+2 Marks) c. Which Company is more risky? (iS Marks) d. If the economy is growing/shrinking, what will be the experience of both firms ? (1.5 Marks)
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