Dear CCI members, kindly provide me solution for this problem.
Mr. X has Rs. 200,000 investment in his business firm. He wants 15% return on his money. From an analysis of recent cost figures he finds that his variable cost of Operating is 60% of sales, his fixed cost are Rs. 80,000 per year. Show computations to answer the following questions.
a) What sales volume must be obtained to Break Even?
b) What sales volume must be obtain to get 15% Return on Investment?
c) Mr. X estimates that even if his closed the doors of his business, he would incure Rs. 25000 as expenses per year. At what sales would be better off by locking his business sup.
CAclubindia
