Question

Rs. Sales 20,000 Variable cost 10,000 Fixed cost 6,000 Find Profit Volume ratio, Break even point and margin of safety at this level, and the effect of : (i) 20 % decrease in fixed cost. (ii) 10 % increase in fixed cost. (iii) 10 % decrease in variable cost. (iv) 10 % increase in selling price. (v) 10 % increase in selling price together with an increase of fixed cost by Rs. 1200. (vi) 10 % decrease in sales price. (vii)10 % decrease in sales price accompanied.

Answer 1

Answer:

20,000 Variable cost 10,000 Fixed cost 6,000 Find Profit Volume ratio, Break even point and margin of safety at this level, and the effect of : (i) 20 % decrease in fixed cost. (ii) 10 % increase in fixed cost. (iii) 10 % decrease in variable cost. (iv) 10 % increase in selling price. (v) 10 % increase in selling price together with an increase of fixed cost by Rs. 1200. (vi) 10 % decrease in sales price. (vii)10 % decrease in sales price accompanied.. .

= 28000, closing stock = 22000, purchase = 46000, sales = 90000, sales return = 10000, carriage inward= 4000, office expenses=4000, selling & dist. Expenses = 2000