During the current year AB Ltd. Should a profit of Rs. 1,80,000 on a sale of Rs. 30,00,000. The various expenses were Rs. 21,00,000. You are required to calculate: 1. The break even sales at present. 2. The break even sales if variable cost increased by 5. 3. The break even sales to maintain the profit as at present, if the selling price is reduced by 6 per cent.
To calculate the break-even sales for AB Ltd. under different scenarios, we first need to determine the contribution margin. The contribution margin is the difference between sales revenue and variable…
