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Marginal cost

Costing

How to approach

Deepak Thinu

CA Inter

★ 390

27-Jan-21 20:24

329

Answers (1)

Difference of old and new PV ratio = 7% => decrease in sales Revised sales = 10,00,000 - 7%(10,00,000) = 9,30,000 New MOS = 40% => Sales X 40% = Sales-BEP = BEP = 60% of Sales Revised BEP = 5,58,000 Fixed cost = BEP X PV ratio => (60% X sales) X PV ratio = 18% X sales Revised Fixed cost = 1,67,400