Question
On investigation it was found that variable costs in XYZ Ltd. is 80 percent of the selling price. If the fixed expenses are Rs.10,000 calculate
On investigation it was found that variable costs in XYZ Ltd. is 80 percent of the selling price. If the
fixed expenses are Rs.10,000 calculate the break-even sales of the company.
Another firm, IMN company Ltd., having the same amount of fixed expenses, has its break even point at
a lower figure than that of XYZ Ltd. Comment on the causes.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the breakeven sales for XYZ Ltd we first need to find the contribution margin ratio The ...
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Step: 2
Step: 3
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
