Question

Total fixed cost rs.4500 total variable cost rs.7500 total sales 15000. Calculate profit

Answer 1

Explanation:

Hanoi University of Technology ECONOMY ECONOMY Eco 100 177427198-Eco

B how much profits are earned by the firms if each of

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(a) Determine the break even point for all the firms in units.(b) How much profits are earned by the firms if each of them sells 80,000 units?(c) What will be the impact percentagewise .on profits if sales increase by 20%.(22) Merry Manufacturers Ltd. has supplied you the following information in respect of one ofits products.Rs.Total Fixed costs 18,000Total Variable Costs 30,000Total Sales 60,000Units Sold 20,000Find out (a) Contribution per unit (b) Break Even Point (c) Margin of Safety (d) Profit (e)Volume of sales to earn a profit of Rs. 24,000.Marginal Costing 413(23) From the following information relating to Quick Standards Ltd., you are required to findout - (a) Contribution (b) BEP in units (c) Margin of Safety (d) Profits.Rs.Total fixed costs 4,500Total variable costs 7,500Total sales 15,000Units sold 5,000 (Units)Also calculate the volume of sales to earn a profit of Rs. 6,000(24) Bindra Ltd. is running its plant at present at 50% of capacity. The management hassupplied you the following details.Cost of production per unitRs.Direct Material 4Direct Labour 2Variable Overheads 6Fixed Overheads (fully absorbed) 416Production per month 40,000 Units

Total cost of products 40,000 Units x Rs. 16 = Rs. 6,40,000Sales Price 40,000 Units x Rs. 14 = Rs. 5,60,000Loss Rs. 80,000An exporter offers to purchase 10,000 units per month @ Rs. 13 per unit and the companyis hesitating in accepting the offer due to the fear that it will increase its already largeoperating losses.Advice whether the company should accept or decline this offer.(25) Mega Corporation manufactures and sells three products to the automobile industry. Allthe products must pass through a machining process, the capacity of which is limited to20,000 hours per annum, both by equipment design and government regulation.414 Management AccountingFollowing additional information is available.Product X Product Y Product ZSelling Price Rs./Unit 1,900 2,400 4,000Variable cost Rs./Unit 700 1,200 2,800Machining requirements hrs/Unit 3 2 1Maximum possible sales units 10,000 2,000 1,000Required - A statement showing the best possible production mix which would providethe maximum profits for Mega Corporation, together with supporting workings.(26) (a) A company’s turnover in a year was Rs. 50,00,000, its profit was Rs. 500,000 andits P/V Ratio was 40% What is the break even point?(b) A factory furnishes the following figures.August 84 September 84Output (Units) 50,000 55,000Total Cost (Rs.) 6,70,000 7,10,000What is the amount of fixed expenses per month?(27) (a) Calculate the Break Even Point from the following data.(i) Sales Price per unit Rs. 10(ii) Variable cost per unit Rs. 6(iii) Fixed overheads Rs.20,000(b) Calculate the revised Break Even Point if -(i) Sales price is increased to R.11 per unit(ii) Sales price is reduced to Rs.9 per unit(iii) Variable cost increased to Rs.7 per unit(iv) Variable cost reduced to Rs.5 per unit(v) Fixed overheads rise to Rs.25,000(vi) Fixed overheads fall to Rs.15,000

Answer 2

Calculation of profit when sales, fixed cost and variable cost are given :

Profit = Sales - (Fixed cost + Variable cost)

= 15000-(4500+7500)

= 15000-12000

= 3000

Profit = 3000

• Fixed cost

These cost are the business cost that does not change when sales increases or decreases. They are always constant.

• Variable cost

These cost change as per the productions of output in the business.