Finding the break-even sales


Response to the following problem:

Rainbow Ltd. sold goods for Rs. 30,00,000 in a year. In that year the variable costs were Rs. 6,00,000 and fixed costs were Rs. 8,00,000.

Find out :

i) P/V Ratio

ii) Break-even sales, and

iii) Break-even Sales if Selling price was reduced by 10 % and Fixed costs were increased by Rs. 1,00,000.

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Financial Accounting: Finding the break-even sales
Reference No:- TGS02088450

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