3. You are required to show the effect of each of
the following changes on profit and Break-Even-Volume
from the information given below:
Sales 50,000
units Rs. 5.00 per unit
Variable
cost Rs. 3.00 per
unit
Fixed
cost Rs. 70,000
Changes:
(i) Price changes by 20%.
(ii) Volume decreases to 40,000 units.
(iii) Variable cost increases to Rs 3.50 per
unit.
(iv) Fixed cost decreases by 10%.
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