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Hi Sir i needed your help to understand this somewhat straight forward problem which unfortunately i cant get my head around to.
Q:- Contribution to sales ratio =25%
Fixed cost =$18,000
Variable cost is = 36.
find the Break even pointAns- my main problem is understanding the simple logic behind the calculation of “selling price”
which is , 36/75%.=48
i understand where both the numbers are coming from but im just finding it difficult to figure out the logic behind it.your assistance would be much appreciated.
thanks.
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