st a. The two firms, X Ltd. and Y Ltd., sell identical products in the...
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Accounting
st a. The two firms, X Ltd. and Y Ltd., sell identical products in the market. Their budgeted profit and loss accounts for the year ending on 31 March 2016 are as follows: X Ltd. (in Rs.) Y Ltd. (in Rs.) Sales 400000 400000 (-) Variable cost 320000 280000 (-) Fixed Cost 360000 80000 360000 Net Profit 40000 40000 40000 You are required to calculate a BEP and margin of safety for X Ltd. [2 Marks] b. BEP and margin of safety for Y Ltd [ 2 Marks) C. State which company is better in achieving BEP and margin or safety [1 Mark]
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