The following suggestions are under consideration:
(a) 10% reduction in price to yield an increase
in sales volume from 6600
to 7400 units.
Current unit price Rs. 1,000
Unit variable cost Rs. 500
Fixed cost Rs. 30,00,000
Prepare a statement comparing gross revenue, profit,
contribution and P/V ratio of the two alternatives with
present results. Which suggestion would you recommend?
- 3 Answers
- 5290 Views
- I also Faced
- E-Mail Answers
Answer Posted / tgr
The price is reduced by 10% but V.cost remains the same.hence it will be first one which is suitable
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
income from depreciated asset is profit or loss?
Expand-------MTRS
explain sales/purchase accounting?
What is written off?
How Many Points include in Mat Calculation , what is the different bitween Gross Profit & Book Profits?
what is undisclosed profit? explain
what is investment banking
Reserve Capital and Reserve Capital
example of SOP
Erection and Instalation charges of Rs 7500 to Lift was debited to repairs and maintenance account. Rectify it
WHEN IN ADJUST. GIVEN THAT THERE IS VALUE OF RS...., OBSOLESCENCE STOCK INCLUDED IN CLOSING STOCK RS.......,WHAT IS THE PROPER WAY TO SHOW IN INCOME STATEMENT AND POSITION STATEMENT.
what can increase gearing?
HOW CALCULATE ADVANCE TAX ? PLEASE EXPLAIN IT ?IN CASE OF FIRM, IF WE PAID FIRST INSTALMENT OF ADVANCE TAX.
How the sub ledgers(AP, AR) integrate with GL liability and receivable
what is organic profit? and how it is calculated?
