Question
Y enterprises sells is product at Rs. 20 per unit. Variable costs are Pa 15 per st (2/3 manufacturing and 1/3non manufacturing). Fxed costs are
Y enterprises sells is product at Rs. 20 per unit. Variable costs are Pa 15 per st (2/3 manufacturing and 1/3non manufacturing). Fxed costs are incurred uniformly throughout the year and amount to Rs.750,000 (2/3 mamufacturing and 1/3 non-mammfactaring Required: a) The number of units that must be sold to carn an after-tax income of Ra. 100,000 assume income tax rate of 20%). Prove your answer by prepaning imcome statement to that effect b) Illustrate the role of changes in fiscal policies (changes in tax ates) and labor unions (changes in structure of salaries and wages) in altering the break-even point calculated in (a). Your answver must be supported by calculations based an arbitrarily assumed values
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