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Hello sir this question HAIR CO sorry i am not sure from which year … but I’ve one query
In this question the requirement B ask for total break even sales revenue for the NEXT year for hair co
But in solution we calculated for the same which is given in question = total fixed cost / total contribution sales ratio
= 640000/ 0.36 = answer 1777777
Sir why we not consider for next year when in question it’s say that sales volume is calculated by adding 10% to last year salesI have all past exam questions but I cannot find one that is called Hair Co.
However, the expected sales volume is not relevant for calculating breakeven. With breakeven analysis we are working out the sales needed to breakeven.
Have you watched my free lectures on CVP analysis? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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