L. 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
L. 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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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

Transcribed Image Text:2. From the following details find out (a) Profit volume ratio, (b) BEP, (c) Margin of safety.
SR 250,000
Fixed Costs
Sales
SR 50,000
Total Costs
Solution:
SR 150,000
Net Profit
SR 50,000
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