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From the following particulars you are required to calculate (a) P I V ratio and (b) Break-even point: Present sales Rs. 2,00,000 Variable cost Rs.
From the following particulars you are required to calculate (a) P I V ratio and (b) Break-even point: Present sales Rs. 2,00,000 Variable cost Rs. 1,20,000 Fixed expenses Rs. 40,000 Ascertain the effect of 10% reduction of selling price on (a) P I V ratio and (b) Break-Even Point. Also calculate the sales required to maintain the profit at the present level. [Ans : (a) P I V Ratio 40% ; New PI V Ratio =33%. (a) Break-even point Rs. 1,00,000; New BEP = Rs. 1,20,000.
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