Answer to Question #258337 in Finance for Sayl

Question #258337

Following particulars has been shared for you. If fixed cost is Rs500000, selling price is Rs60 and Variable cost is Rs20

a. Calculate and describe -Breakeven point (5 Marks)

b. What could be the sales number to earn a profit of Rs 50000, at a Fixed Cost Rs 200000, Variable Cost Rs30 per unit, Selling Price Rs 60 per unit (5 Marks)


1
Expert's answer
2021-10-31T18:37:54-0400

a.Break- even point"=" Fixed Costs"\u00f7(" Sales per unit"-" Variable cost per unit")"

"=Rs500000\u00f7(60-20)"

"= 12,500" units

b. "TR-TC=TP"

"60Q-200000-30Q=50000"

"30Q=" "250,000"

"Q=8,333.33" units


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