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Question - Financial information for the two balance sheet dates provided for the Modern Ltd., as: (% of Total Sales)
Year
Sales
P/V ratio (CM ratio)
Margin of Safety
2018
Rs 9,30,000
50%
40%
2019
?
38%
22%
Re-engineering process has resulted in considerable improvement in the fixed cost in 2019. Modern Ltd able of keep its sales level of 2018 in 2019 by decreasing the sales price.
Required -
1. Calculate the Sales in Rupees for 2019.
2. Calculate the Fixed cost in Rupees for 2019.
3. Calculate the Break-even sales in Rupees for 2019.
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