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Business, 20.03.2021 07:10 375025

A company has annual fixed costs of birr 14,000. In 1996 sales amounted to birr 60,000 as compared with birr 45,000 in 1995 and profit in 1996 was birr 4,200 higher

than in 1995.

i. At what level of sales does the company breakeven?

ii. Determine profit or loss on a forecast sales volume of birr 80,000

iii. If there is a reduction in selling price in 1997 by 10% and the company

desires to earn the same profit as in 1996, what would be required sales

volume? ​

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