Following information related to Novel limited is provided. Selling Price 80 per unit Variable Manufacturing Cost 28 per unit Variable Selling cost 12 per unit Fixed Factory Overheads 5, 40,000 per year Fixed Selling Cost is 252,000 per year You are required to calculate the followings: i. Break Even point in units and Rupees ii. PV ratio ii. Number of units that must be sold to earn a profit of ? 60,000 per year

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Following information related to Novel limited is provided.
Selling Price 80 per unit
Variable Manufacturing Cost 28 per unit
Variable Selling cost 12 per unit
Fixed Factory Overheads 5, 40,000 per year
Fixed Selling Cost is 252,000 per year
You are required to calculate the followings:
i. Break Even point in units and Rupees
ii. PV ratio
i. Number of units that must be sold to earn a profit of Z 60,000 per year
iv. Impact of decrease in Selling price by 10 percent on Breakeven Point.
v. Impact of increase in selling price by 20 percent on PV Ratio
Transcribed Image Text:Following information related to Novel limited is provided. Selling Price 80 per unit Variable Manufacturing Cost 28 per unit Variable Selling cost 12 per unit Fixed Factory Overheads 5, 40,000 per year Fixed Selling Cost is 252,000 per year You are required to calculate the followings: i. Break Even point in units and Rupees ii. PV ratio i. Number of units that must be sold to earn a profit of Z 60,000 per year iv. Impact of decrease in Selling price by 10 percent on Breakeven Point. v. Impact of increase in selling price by 20 percent on PV Ratio
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