Q6 The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each)  Rs. 5, 00,000 Variable cost                                          3, 00,000 Contribution margin                               2, 00,000 Less Fixed cost                                       100,000 Profit before tax                                       100,000  Less tax                                                     35,000  Profit after tax                                            65,000 Required At what level of sales will the company be able to maintain its present pre- tax profit position even after expansion?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Q6 The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s

Sales (200,000 units @ 2.5 Each)  Rs. 5, 00,000

Variable cost                                          3, 00,000

Contribution margin                               2, 00,000

Less Fixed cost                                       100,000

Profit before tax                                       100,000 

Less tax                                                     35,000 

Profit after tax                                            65,000

Required

At what level of sales will the company be able to maintain its present pre- tax profit position even after expansion?

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