Question
MNC Ltd. has prepared the following budget estimates for the year 2013. Sales Units 15 Units Fixed Expenses Tk. 34,000.00 Sales ValueTk. 1.50.000.00 Variable Costs
MNC Ltd. has prepared the following budget estimates for the year 2013.
Sales Units 15 Units
Fixed Expenses Tk. 34,000.00
Sales ValueTk. 1.50.000.00
Variable Costs Tk. 6.00 per unit
1. Find Contribution ratio, Break Even Point both in terms Units and Sales value & Margin of Safety ratio.
2. Repeat considering each of the following cases
- Decrease 10% in Selling Price
- Increase 10% in Variable Cost
- Increase of Sales Volume by 2,000 units
- Increase Tk. 6,000 in Fixed Costs
- Increase of 20% in Selling Price accompanied by an increase of Tk. 10,000.00 in Fixed Costs and decrease of 10% in Variable Costs.
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