fmae6

Compute the Selling price, BEP in units in the following question: (Total Marks=8) (a). A company proposes to introduce new product in the market. It would like to maintain P/V Ratio@ 25\%. If the Variable Cost (VC) of the product is per unit is Rs. 300 /- what should be the selling price per unit? (Marks - 2) (b). ABC Ltd. sold 55000 units of its product at Rs.375/- per unit. Variable costs are 185/- per unit. Fixed costs incurred uniformly throughout the year amounted to Rs.61,75,000/-. You are required to compute the following: 1. Breakeven point in units 2. PN Ratio 3. No. of units that must to sold to earn EBIT of Rs.500000/- 4. Sales level to achieve an after-tax income (PAT) of Rs. 500000/ - assuming a tax rate of 50% (Marks41.5=6)