number of units that must be sold to earn a profit of rs 1 00 000 per year 608768

Model 3: Contribution, P/ V ratio, sales (volume) and profit]

From the following data, calculate:

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  1. BEP (in rupees) sales value.
  2. Number of units that must be sold to earn a profit of Rs. 1,00,000 per year.
  3. Number of units that must be sold to earn a net income of 20% on sales.

Sales price

25 per unit

Variable manufacturing costs

12 per unit

Variable selling costs

5 per unit

Fixed factory overheads

6,25,000 per year

Fixed selling costs

2,75,000 per year

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