1. The operating results of a company for two years are as follows:

Sales RO Profits RO

2004 270000 6000

2005 300000 15000

Assuming that the cost structure and the selling price per unit remain the same, you are required

to calculate:

1. P/V ratio.

2. Fixed cost.

3. BEP.

4. Variable cost for 2004 and 2005.