Calculate the volume of sales to earn profit, Finance Basics

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From the following information related to XYZ Ltd.; you are required to find out (a) contribution (b) Break-even point in units (c) Margin of safety, (d) Profit

            Total Fixed Costs                   Rs.        6,000

            Total Variable Costs               Rs.       20,000

            Total Sales                            Rs.       32,000

            Units Sold                                          4,000 Units

Also calculate the volume of sales to earn profit of Rs. 12,000.

 


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