Somebody please help how to calculate indfference point in case of three alternatives
if three alternatives avlble like VC Rs3 ,4,6 and fixed cost be Rs Rs 15000. 10000 and 5000
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Urgent!!!! indiffernce point -costing
Replies (6)
change in fixed cost/ changein variable cost
indifference point is always calculated for two options
indifference point is always calculated for two options
for 1 and 2 15000-10000/4-3 will come 5000 units
like wise calculate for 2 and 3 , 1 and three
Just compute for alternatives like a to b b to c and a to c. Put all the figures in one line. Compare what is best for each quantity
Compute for alternatives like a to b b to c and a to c
Compare what is best
You can refer question 11 of practice manual of icai on page no. 2.36
thank you very much, had the same doubt! :)
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