A company budgets for a production of 1,50,000 units. The Va…
A company budgets for a production of 1,50,000 units. The Variable Cost per unit is Rs. 14 and Fixed Cost is Rs. 2 per unit. The company fixes its Selling Price to fetch a profit of 15% on cost. What is the BEP? What is the P/V Ratio? If it reduces its Selling Price by 5%, how much does the revised Selling Price affect the BEP and the P/V Ratio? If a profit increase of 10% is desired more than the budget, what should be the sales at the reduced prices?
