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Bhartiyam Fans Ltd. is an important player in its industry. It produces fans for variety of users. Following cost data is available about its product:
Bhartiyam Fans Ltd. is an important player in its industry. It produces fans for variety of users. Following cost data is available about its product: i. Selling price per unit - Rs. 1000/- ii. Variable cost per unit - Rs. 460 /- iii. Fixed cost per annum - Rs. 10,00,000/- Calculate followings for the company: (a) P/V ratio (b) Break Even Point in Units as well as in rupees (c) Sales required to earn a profit of Rs. 2,50,000. (d) Profit earned by the company if the company generates sales of Rs. 50,00,000. (e) New Break Even Point if the selling price is reduced by 20% by the management of the company due to competitive pressure (f) Margin of Safety and Margin of Safety Ratio if the company generates sales of Rs. 60,00,000
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