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solve both or skip Illustration 6: Calculate: The amount of fixed expenses The number of units to break-even The number of units to earn a
solve both or skip
Illustration 6: Calculate: The amount of fixed expenses The number of units to break-even The number of units to earn a profit of rs.40,000 The selling price can be assumed as rs.10. The company sold in two successive periods 9,000 units and 7,000 units and has incurred a loss of rs.10,000 and earned rs. 10,000 as profit respectively. Illustration 5: 10 A factory engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per annum: Rs. Material Labour cost 3 Overheads 5 (60% fixed) The selling price is rs.20 per bucket. If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity the selling price falls by 5%, accompanied by a similar fall in the prices of material. You are required to calculate the profit at 50% and 90% capacities and also the break-even points for the same capacity productionsStep by Step Solution
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