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Mr. X has 2,00,000 investments in his business firm. He wants a 15 per cent return on his money. From an analysis of recent cost
Mr. X has 2,00,000 investments in his business firm. He wants a 15 per cent return on his money. From an analysis of recent cost figures, he finds that his variable cost of operating is 60 per cent of sales, his fixed costs are 80,000 per year. Show computations to answer the following questions: () What sales volume must be obtained to break even? (ii) What sales volume must be obtained to get 15 per cent return on investment? (iii) Mr. X estimates that even if he closed the doors of his business, he would incur 25,000 as expenses per year. At what sales would he be better off by locking his business up
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