The following figures of sales and profits for two periods are available in respect of a concern:

The following figures of sales and profits for two periods are available in respect of a concern:


You are required to find;
(i) P/V ratio
(ii) Fixed cost
(iii) Break – even point
(iv) Profit at an estimated sale of Kshs. 125,000
(v) Sales required to earn a profit of Kshs. 20,000

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Wilfykil answered the question on April 15, 2019 at 11:04

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• (a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point. (Solved)
  

  (a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point.
  
  (b) Find out new break - even point if;
  (i) Fixed costs increase by Kshs. 10,000
  (ii) Variable costs increase by 15% on sales
  (iii) Sales price increases by 20%
  (iv) Variable costs are reduced by 10%

  Date posted: April 15, 2019 .    Answers (1)