A company has a contribution/sales ratio of 50%. It maintains a MOS of 25%. If its annual fixed cost is Rs. 50 lakhs, calculate: BE sales, MOS, Total Sales, Total Variable Cost and Profit
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Break even sales and Margin of safety
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BE SALES
FIXED COST/PV RATIO.
NOW CALCULATE TOTAL SALES.
PV RATI O GIVEN CALCULATE VARIABLE COST.
FIXED COST/PV RATIO.
NOW CALCULATE TOTAL SALES.
PV RATI O GIVEN CALCULATE VARIABLE COST.
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