Answer Posted / syed

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

I want to know the ANSWER IS CORRECT / NOT. If not please
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syed.

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