Contribution Margin Ratio is 40% of net sales (Sales – Commission and Bad Debts) Commission is 4%; Bad Debts is 3% of Credit Sales which is 75% of Sales; Other Variable Costs Rs.7,200,000; Margin of Safety 20%. Compute Budgeted Sales, Breakeven Sales and Net Profit
This does not look like an APM question. I don’t know where you got it from, but either there will be an answer available in the back of the book or your tutor/teacher/lecturer will be able to help.
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