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
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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: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
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
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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