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Trolly Ltd achieved the following results in the year just ended: Rs. Sales 600,000 Less variable cost of sales 300,000 Contribution 300,000 Less fixed costs
Trolly Ltd achieved the following results in the year just ended:
Rs. | |
Sales | 600,000 |
Less variable cost of sales | 300,000 |
Contribution | 300,000 |
Less fixed costs | 250,000 |
Profit | 50,000 |
In planning for next year, the companys management estimates that variable costs will rise by 10% per unit and fixed costs will rise by Rs. 27,500. If there is to be no increase in unit sales prices, so that any extra revenue must be earned by increase in sales volume, what amount of sales would be needed next year to earn a profit of Rs. 60,000?
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