Question

. A company produces single product which sells for Rs 20 per unit.

Variable cost is Rs.15 per unit and Fixed overhead for the year is Rs. 6,30,000.


Calculate sales if loss is Rs. 60,000​

Answer 1

Answer:

Sales unit= 1,14,000

Sales Value=114000*20=22,80,000

Explanation:

Contribution= Sale price - Variable cost

Contribution= Fixed cost+Profit/Loss

Contribution= S.P-V.C= 20-15= 5 per unit

Contribution= F.C-loss= 630000-60000= 570000

Sale unit= 570000/5= 114000 unit

Answer 2

Given,

Selling price per unit = Rs. 20

Variable cost per unit = Rs. 15

Fixed overhead = Rs. 6,30,000

Loss = Rs. 60,000

To find,

Sales

Solution,

Firstly, We will calculate the contribution per unit with the help of the formula which is given below:

Sales - variable cost = contribution

Putting the values given above in the formula

Contribution = Rs. 20 per unit- Rs. 15 per unit

Contribution = Rs. 5 per unit

Now,

We will calculate the total contribution with the help of the formula which is given below:

Contribution = fixed cost + profit(loss)

Putting the values given above in the formula

We will get,

Contribution = Rs.6,30,000-Rs.60,000

Contribution = Rs. 5,70,000

Now,

The number of units will be calculated as follows:

Number of units sold= Total contribution/ Contribution per unit

Putting the values from above in the formula,

The number of units sold = Rs. 5,70,000/Rs. 5 per unit

So, the number of units = 1,14,000

Hence, The sales units is 1,14,000