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From the following data calculate (i) P/V Ratio (ii) Profit
when sales are Rs.20,000 and (iii) the new Break-Even
Point, if the selling price is reduced by 20%
Fixed expenses Rs. 4,000
Break-Even-Pont Rs. 10,000
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Answer Posted / sunita
P/V Ratio Contribution/Sales*100
Contribution Sales - Variable Cost
BEP = Fixed Cost/Contribution*Sales
10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000
Contribution 20000-8000
Contribution 12000
P/V Ratio 12000/20000*100
P/V Ratio 60
Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000
IF selling price reduced by 20%, New BEP
Sales 20000*20/100 16000
BEP 4000/12000*16000
5333.333333
| Is This Answer Correct ? | 19 Yes | 25 No |
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