Two businesses, AB Ltd and CD Ltd, sell the same type of product in the same type T of market. Their budgeted profit and

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Two Businesses Ab Ltd And Cd Ltd Sell The Same Type Of Product In The Same Type T Of Market Their Budgeted Profit And 1 (87.56 KiB) Viewed 14 times

Two businesses, AB Ltd and CD Ltd, sell the same type of product in the same type T of market. Their budgeted profit and loss accounts for the current year ending March 31, are as follows: Particulars AB Ltd CD Ltd Sales $ 150,000 $ 1,50,000 Less: Variable costs $ 1,20,000 Fixed costs 15,000 1,35,000 1,35,000 Net budgeted profit 15,000 15,000 You are required to: 1. Calculate the break-even points of each business ;and 2. State which business is likely to earn greater profits in conditions of: (a) heavy demand for the product, (b) low demand for the product. $ 1,00,000 35,000