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Fancy Bag company purchases Ladies Bags from a wholesaler @ Rs 1100/- per piece. They add accessories and packaging and sell each bag for Rs 1800/- per piece. They incur certain fixed expenses.
The company wants to understand how many pieces they must sell in order to be profitable.
They seek the help of a Management accountant to:
Question a. Ascertain Contribution per piece and as a % of Sales Price
Question B. Prepare the Profit / Loss account for sale of 200 pieces 300 pieces
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