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Sale of a product amounted to 1000 units per annum at Rs 500 per unit. Fixed overheads are Rs 100000 per annum and Variable cost
Sale of a product amounted to 1000 units per annum at Rs 500 per unit. Fixed overheads are Rs 100000 per annum and Variable cost Rs 300 per unit. There is a proposal to reduce the price by 20% to increase the sales. Calculate the P/V Ratios and BEP (in units and value) for the present and future if the proposal is accepted. How many units must be sold, in case the proposal is accepted, to maintain the current profit?
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