From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling price is reduced by 20%. Fixed cost: Variable expenses: Depreciation SR 200,000 Materials SR 5 per unit Salaries SR 50,000 Labor SR 5per unit Selling price SR 15 pe
From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling price is reduced by 20%. Fixed cost: Variable expenses: Depreciation SR 200,000 Materials SR 5 per unit Salaries SR 50,000 Labor SR 5per unit Selling price SR 15 pe
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling price is reduced by 20%.
Fixed cost:
|
Variable expenses:
|
||
|
SR 200,000 |
Materials |
SR 5 per unit
|
Salaries |
SR 50,000
|
Labor |
SR 5per unit |
Selling price |
SR 15 per unit
|
|
|

Transcribed Image Text:1. From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling
price is reduced by 20%.
Fixed cost:
Depreciation
Salaries
Selling price
SR 200,000
SR 50,000
SR 15 per unit
Variable expenses:
Materials
Labor
SR 5 per unit
SR 5per unit
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