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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ILLUSTRATION S
You are given the following data for the current financial year of Rio Co. Ltd:
Variable fost
Fixed cost
Net profit
Sales
60,000
30,000
10,000
1,00,000
60%
30%
10%
100%
FIND OUT (a) Break-even point, (b) P/V ratio, and (c) Margin of safety. Also DRAW
a break-even chart showing contribution and profit.
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