Hey everyone In this question it is only mentioned that we have increased the sales by 10% but in the solution they have increased the variable cost also by 10%, why is that so?? Can anyone tell me!!!

Question

Manoj · Answer

Okay okay

Paras · Answer

Like there is 2% decrease in all cost. So first I will add 10% in cost and after reduce it by 2%

Paras · Answer

There is increasing in sales volume means increase in unit sold by 10 %. So first we inc all amount with 10% and there after we adjust amount accordingly as per question

Hey everyone In this question it is only mentioned that we have increased the sales by 10% but in the solution they have increased the variable cost also by 10%, why is that so?? Can anyone tell me!!!

3 answers

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