On investigation it was found that variable cost in XYZ Ltd is 80 per cent of the selling price. If the fixed expenses are `10,000, calculate the break-even sales of the company. Another firm, IMN...

On investigation it was found that variable cost in XYZ Ltd is 80 per cent of the selling price. If the fixed expenses are `10,000, calculate the break-even sales of the company.

Another firm, IMN Company Ltd, having the same amount of fixed expenses, has its break-even point at a lower figure than that of XYZ Ltd. Comment on the causes.