M/s PQR gives following details in respect of a unit of a particular Product :
Number of units produced and sold in a month of August 2018 are 1,000. Fixed overheads in a month are 30,000.
You are required to calculate for August 2018 ;
(i) P/V Ratio.
(ii) Break even point (in Units).
(iii) Margin of Safety (in Units), Actual Sales (Units) and BEP Sales Units.
(iv) If Selling price is increased by 10%, calculate the Revised Break-even Point (in units) and Margin of Safety.
The budgeted production of Alfa Ltd. is 60,000 units, the Variable cost per unit is Rs.16 and Fixed Cost per unit is Rs. 4. Selling price is to be fixed to fetch a profit of 20% on cost.
(i) Calculate BEP and P/V ratio at budgeted selling price.
(ii) If selling price is reduced by 10%, what will be the BEP and P/V ratio ?
(iii) Company desires 10% increase in budgeted profits at revised selling price mentioned in (ii) above, calculate required Sales volume in units and rupees.