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Q. Evaluate Break-Even Production units?
R.S. Manufacturing Ltd. Budgets production of 3,00,000 units at cost of Rs.10 each. The Fixed costs are Rs.20, 00,000. The selling price is fixed to yield 20% profit on cost. You are required to evaluate:
a. P/V Ratio
b. Break-Even Production units
Refer to the Consolidated Statements of Shareholders' Equity (pp. 62-63), Consolidated Statements of Cash Flow, including an abstract from Note 2, Cash Flow Information (pp. 61 and
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