90 units of a product are sold for Rs. 100

by | Mar 18, 2020 | Uncategorized

  

Question:

90 units of a product are sold for Rs. 100 per unit. Variable cost relating to production and selling is Rs. 75 per unit and fixed cost is Rs. 2,250.

Required:

Prepare Income Statement and analyze under each of the following conditions:

Management decides to increase its sales by 10 units

Management decides to increase its sales price by 10%

Management decides to decrease its sales price by 10%

Management decides to decrease its sales price by 10% and expects an increase in sales volume by 50%.

(Marks= )

  

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