The following figures of sales and profits for two periods are available in respect of a concern:
(Solved)
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
Date posted:
April 15, 2019
.
Answers (1)
(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)