The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each)  Rs. 5, 00,000 Variable cost        3, 00,000 Contribution margin         2, 00,000 Less Fixed cost         100,000 Profit before tax         100,000 Less tax           35,000 Profit after tax           65,000 Required The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s

Sales (200,000 units @ 2.5 Each)  Rs. 5, 00,000

Variable cost        3, 00,000

Contribution margin         2, 00,000

Less Fixed cost         100,000

Profit before tax         100,000

Less tax           35,000

Profit after tax           65,000

Required

The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.

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