Q3. Brainteaser Company Ltd has existing sales of INR 1,400 lakhs. Its breakeven sales amount to 60% of its existing sales and the variable costs amount to two and a half times that of contribution, the existing profit of the organization (in INR lakhs) would amount to? Compute the existing profit of the company and show your workings clearly.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Q3. Brainteaser Company Ltd has existing sales of INR 1,400 lakhs. Its breakeven sales
amount to 60% of its existing sales and the variable costs amount to two and a half times that
of contribution, the existing profit of the organization (in INR lakhs) would amount to?
Compute the existing profit of the company and show your workings clearly.
Transcribed Image Text:Q3. Brainteaser Company Ltd has existing sales of INR 1,400 lakhs. Its breakeven sales amount to 60% of its existing sales and the variable costs amount to two and a half times that of contribution, the existing profit of the organization (in INR lakhs) would amount to? Compute the existing profit of the company and show your workings clearly.
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