2019 2020 Sales 405000 450000 Variable cost 225000 240000 PV ratio 44.44% 46.67% BEP in sales 202500 257142.86 Fixed cost 90000 120000 Q) sales required to earn a profit of 40000 1 calculate values for both year's ??

2019 2020 Sales 405000 450000 Variable cost 225000 240000 PV ratio 44.44% 46.67% BEP in sales 202500 257142.86 Fixed cost 90000 120000 Q) sales required to earn a profit of 40000 1 calculate values for both year's ??

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

	2019	2020
Sales	405000	450000
Variable cost	225000	240000
PV ratio	44.44%	46.67%
BEP in sales	202500	257142.86
Fixed cost	90000	120000
Q) sales required to earn a profit of 40000 1 calculate values for both year's ??

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