Laurel Mills, Inc., with fixed costs of $100,000, found that when sales jumped from $300,000 to...
Question:
Laurel Mills, Inc., with fixed costs of $100,000, found that when sales jumped from $300,000 to $400,000, the profit increased by $40,000. Both sales levels exceeded the break-even point.
Required:
The profit at a sales volume of $650,000.
PV ratio
Pv Ratio of the profit volume ratio is basically a measure that is computed by various organizations and companies in order to analyze the relationship between an increase/decrease in earnings of the firm as compared to an alteration in sales.
Answer and Explanation: 1
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View this answerThe profit earned at $650,000 of sales is $160,000
| Description | Amount |
| Initial sales | $300,000 |
| Increased sales | $400,000 |
| Increase in sales (a) | ... |
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