Question
QUESTION 1 [10 MARKS] 1 A) Excellent Ltd, a manufacturing company provides you the following details for the year 2021 . Considering the losses, the
QUESTION 1 [10 MARKS] 1 A) Excellent Ltd, a manufacturing company provides you the following details for the year 2021 . Considering the losses, the manager is proposing that an increase of Rs. 4,00,000 in advertising outlays will increase sales substantially. His plan was approved by the Chairman of the Board: REQUIRED: i. Calculate P/V Ratio and Break-Even Sales before the proposal for additional advertisement is implemented. ii. What additional sales will be required to offset that increase in advertisement outlays? iii. What should be selling price per unit if the breakeven point is brought down to 20,000 units?
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