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 55. 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., we need to consider the fixed costs, variable costs, and the selling price. Break-even sales represent the level of sales at which…