a company furnishes the following information calculate its breakeven sales and revi 610235

A company furnishes the following information. Calculate its breakeven sales and revised breakeven sales.

1. The PV ratio is 40%.
2. The selling price is intended to be enhanced by 20%.
3. The firm”s variable cost has increased by 10%.
4. The fixed costs of the firm are also enhanced from INR 8,00,000 to INR 12,00,000.
5. Problem 9
6. A company Veta Zest Ltd intends to reduce the selling price of its product by 20%. This step is expected to increase the firm”s sales. If its fixed costs and variable costs remain same, then advice the management whether it should take up the price reduction step or not.
7. The total sale of the business is 1,20,000 units at INR 10 each. The variable cost per unit is INR 6 while total fixed costs come out to be INR 1,50,000.