An analysis of costs of a company led to
the following information
% of sale) shut-down cost
Direct Materials
Direct Labour
Factory overhead
Distribution Capenses
63,400
Gan & Adn. Gup.
Budgeted sales for
the next year
are ₹20,00,000
3.3.6.
28.4
11.6
3.3
1, 66, 700
99, 900
you are required to determine:
(1) the break-even sales volume
(2) the profit at the budgeted sales volume
(3) the profit if
actual sales
(a) drop by 12.5%
(b) increase by 10%
(iv) sales to
generate a profit of ₹ 220,000
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