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Q. Evaluate Break-Even Production units?
R.S. Manufacturing Ltd. Budgets production of 3,00,000 units at cost of Rs.10 each. The Fixed costs are Rs.20, 00,000. The selling price is fixed to yield 20% profit on cost. You are required to evaluate:
a. P/V Ratio
b. Break-Even Production units
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Equation illustrates the relationship in between PVA n , A, K and n. So manipulating this a bit: We find that A = PVA n [(k (1 + k) n )/((1 +k) n - 1)] [(k (1 + k) n )/(
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