Question
Selling price = ₹100/unit, Variable cost = ₹60/unit,
Fixed cost = ₹4,00,000. Sales = 12,000 units. Calculate sales amount if the desired profit is ₹80,000.Solution
Contribution/unit = 40. desired sales = FC + Desired profits/ C per unit = 4,00,000 + 80,000/ 40 = 12,000 units. Sales = 12,000 units x ₹100= ₹12,00,000
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