1. From the following data, calculate break-even point expressed in terms of units and also the new BEP, if sellingprice is reduced by 20%.Fixed cost:DepreciationSalariesSelling priceSR 200,000SR 50,000SR 15 per unitVariable expenses:MaterialsLaborSR 5 per unitSR 5per unit 2. From the following details find out (a) Profit volume ratio, (b) BEP, (c) Margin of safety.SR 250,000Fixed CostsSalesSR 50,000Total CostsSolution:SR 150,000Net ProfitSR 50,000

1.Fixed cost :Depreciation = SR200,000Salaries = SR50,000Variable expenses:Materials = SR10 per…

Answered: L. From the following data, calculate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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L. From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling price is reduced by 20%. Fixed cost: Depreciation Salaries Selling price SR 200,000 SR 50,000 SR 15 per unit Variable expenses: Materials Labor SR 5 per unit SR 5per unit