The following data are avaibble from the reccords of a compary: Sales: Rs 60,000 V.C:Rs 30,000 Fixed Cost: Rs 15, 000 Calculate: 1) P/VRatio BEP(Rs) and M/S at this lend. 2) The effect of10%increase in sales price 3) The effect of10%decrease in sales price

The following data are avaibble from the reccords of a compary: Sales: Rs 60,000 V.C:Rs 30,000 Fixed Cost: Rs 15, 000 Calculate: 1) P/VRatio BEP(Rs) and M/S at this lend. 2) The effect of10%increase in sales price 3) The effect of10%decrease in sales price

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

The following data are avaibble from the reccords of a compary:

Sales: Rs 60,000

V.C:Rs 30,000

Fixed Cost: Rs 15, 000

Calculate:

1) P/VRatio BEP(Rs) and M/S at this lend.

2) The effect of10%increase in sales price

3) The effect of10%decrease in sales price

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Step 2: 1) Calculation of PV ratio, Break-even point and Margin of safety:

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Step 3: 2) Calculation of the effect of 10% increase on the sales price:

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Step 4: 3) Calculation of the effect of 10% decrease on the sales price:

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The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)