Two firms A & Co. and B & Co. sell the same type of product in the same market. Their budgeted Profit & Loss account (Profit & Loss A/c) for the year that ends on 31 March 1996 is as follows:
4 30 000
4 70 000
Required: Calculate at which sales both the firms will earn an equal profit. State which firm is likely to earn greater profit in condition of: Heavy demand for the product. Low demand for the product.