Question

Fixed factory overhead cost = 60000
Fixed selling overhead cost =12000
Variable manufacturing cost per unit = 12
Variable selling cost per unit = 3
Selling price per unit = 24
Find find break even point in term of sales value and in unit
Also find Number of units that must be sold to earn a profit of Rs. 90000 ??​

Answer 1

Answer:

Break even = 8000 Units B.E In value = Rs.192000/-

To earn a profit of Rs.90000/- 18000 Units are to be sold

Explanation:

Selling Price                                 = 24

Less Variable selling cost           =   3

Less Variable Manufacturing

Cost                                              =12

                                                  -------------

Contribution                            =   9

Fixed cost = 60000+ 12000 = 72000

To Break even = Total Fixed cost/Contribution per unit

  = 72000/9 = 8000 Units

In Value = 8000 *  24 = Rs.192000/-  

No. of units that has to be sold to get a profit of Rs.90000/-

= (Fixed cost + Desired profit) / contribution per unit

= (72000 + 90000) / 9 = 18000 Units