Marston company sells a single product at a price of Rs.50 per unit, its fixed costs total Rs.15,000 and variable costs amount to Rs. 20 per unit. If management reduces the sales price of this product by Rs. 5 per unit, the sales volume needed for the company to break even will:
Increase by Rs. 2,000
Step 1 – Original break-even sales: \(Q_0=\frac{15000}{50-20}=500\) units; sales = 500 × ₹50 = ₹25,000.
Step 2 – Revised break-even sales: \(Q_1=\frac{15000}{45-20}=600\) units; sales = 600 × ₹45 = ₹27,000.
Required sales revenue therefore increases by ₹2,000 (the unit volume increases by 100).
Important Questions from Financial Management - Teaching
In a research-oriented special library emphasizing current scientific findings, which listed category commonly accounts for a large share of recurring collection expenditure?
According to staff formula, which section of the university library needs to have "one person for every 50 readers using the library in a day of the year"?
In the normal annual advance-planning cycle, a library prepares its budget for the _______.
The reasons behind the growth of financial markets globally are
(a) Currency fluctuations
(b) Deregulation
(c) International Banks
(d) Information Technology
Select the correct option:
Which type of fiscal estimation is the Kothari Commission's (1964-66) recommendation that a university should spend each year about 25 for each student and 300 per teacher?
