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Shankar posted an Question
March 10, 2022 • 22:10 pm 2 points
  • UGC NET
  • Commerce

6) from the following information about a firm, what will be the contribution to sales (c/s) ratio and the profit? sales t 100,000 fixed cost = r 20,000 break-e

6) From the following information about a firm, what will be the contribution to sales (c/s) ratio and the profit? Sales T 100,000 Fixed Cost = R 20,000 Break-even Point 40,000 faa= 100,000 foria a = { 20,000 E1H - 3C Refa (ap zcEoI IŠE) = { 40,000 Solve this Question

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    Barkha best-answer

    Break even point = Fixed cost / Contribution per margin 40,000= 20,000/Contribution per unit Contribution per unit comes to = 20,000/50,000 Contribution per unit = 0.5 Now, To calculate the profit Sales = 100000 (Given) - Variable cost = 50,000 ( Here variable cost is calculated by subtracting Sales - Contribution) = Contribution = 50,000 (Sales*0.5) - Fixed cost = 20,000 ( Given) = Profit = Rs 30,000 Ans . Now to calculate Contribution/Sales ratio Contribution calculated is 50,000 Sales = 100,000 So, 50,000/100,000 = 1/2 or 0.5 Ans

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