Question

The ratio of variable costs to sales is given to be 50%. The BE.P. occurs at 75% of sales
Find out the capacity sales when fixed costs are 7 1,50,000. Determine profit at 80% and
100% capacity​

Answer 1

Step-by-step explanation:

Desired profit formula in marginal costing

Contribution desired = Fixed cost + Desired Profit = 30,000 + 50,000 = 80,000 b. Calculation of contribution by producing 40,000 units. Contribution per unit = Selling price – Marginal cost = 3.00 – 1.50 = 1.50 c.