Ex. 13. From the following data relating to a company calculate :
(1) The break-even sales, and
(ii) Sales required to earn a profit of Rs. 6,000 per period.
Period
Total Sales
Rs.
42.500
39.200
9961(ii) Rs. 47,500).
Total Cost
Rc
38.700
36.852
11
Answers
Answer:
actually I don't know the answer..... please don't mind....
We know that (S‐v) /S= F + P OR s x P/V Ratio = Contribution
So, (A) P/V Ratio = Contribution/sales x 100
= (40‐24)/40 x 100 = 16/40 x 100 OR 40%
(B) Break even sales
S x P/V Ratio = Fixed Cost
(At break even sales, contribution is equal to fixed cost)
Putting this values: s x 40/100 = 16,000
S = 16,000 x 100 / 40 = 40,000 OR 1000 units
(C) The sales to earn a profit of Rs. 2,000
S x P/V Ratio = F + P
Putting this values: s x 40/100 = 16000 + 2000
S = 18,000 x 100/40
S = Rs. 45,000OR 1125 units
(D)Profit at sales of 60,000
S x P/V Ratio = F + P
Putting this values: Rs. 60,000 x 40/100 = 16000 + P
24,000 = 16000 + P
24,000 – 16,000 = P
8,000
(E) New break even sales, if sale price is reduced by10%
New sales price = 40‐10% = 40‐4 = 36
Marginal cost = Rs. 24
Contribution = Rs. 12
P/V Ratio = Contribution/Sales
= 12/36 x100 OR 33.33%
Now, s x P/V Ratio = F (at B.E.P. contribution is equal to fixed cost)
S x 100/300 = Rs.16000
S = 16000 x 300/100
S= Rs 48000