possible annual sales may not exceed $50 lakhs and if there is competition it may fall considerably. 48. A company has a project to install a new machine exclusively for the manufacture product which is expected to have good demand and reasonably high margin. Maximum of a new ompany has obtained quotations and short listed two offers for the new machine. Details in respect of the two models are given below : Machine Models м, $ 50 lakhs 5 lakhs 15 lakhs Maximum possible sales per year Fixed Costs per year Estimated profit for maximum sales $ 50 lakhs 8 lakhs 17 lakhs You are required to calculate : (i) Break even sales of each machine; (ii) Sales at which both models will give the same profit;

possible annual sales may not exceed $50 lakhs and if there is competition it may fall considerably. 48. A company has a project to install a new machine exclusively for the manufacture product which is expected to have good demand and reasonably high margin. Maximum of a new ompany has obtained quotations and short listed two offers for the new machine. Details in respect of the two models are given below : Machine Models м, $ 50 lakhs 5 lakhs 15 lakhs Maximum possible sales per year Fixed Costs per year Estimated profit for maximum sales $ 50 lakhs 8 lakhs 17 lakhs You are required to calculate : (i) Break even sales of each machine; (ii) Sales at which both models will give the same profit;

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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