A factory engaged in producing 'Plastic Buckets' in working to 40% capacity and produces 10,000 buckets p.a.
The present cost break-up for one bucket is as under:
|Labour Cost||(Rs.) 3|
|Overheads||(Rs.) 5( 60% Fixed Cost)|
|Selling Price||(Rs.) 20 Per Bucket|
If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity, the selling price falls by 5% accompanied by the similar fall in the prices of materials. You are required to calculate the profit at 50% and 90% capacity and also calculate the BEP for the same capacity productions.
A cost structure of a Company is expressed by the following equation :
T = Rs. 30,000 + 0.70X
T =Total Cost
X =Sales Value.
(a) Break-even Point Sales in Rupees.
(b) Profit on the present Sales of 1,200 units @ Rs. 100 per unit.
(c) Margin of Safety in :
(i) Rupee Value, (ii) Units, (iii) As a Percentage of Sales.
The Sales Turnover and Total Cost of M/s. ABC Ltd. are as under :
|Year||Sales(Rs.)||Total Cost (Rs.)|
You are required to calculate:
(a) Profit Volume Ratio, (b) Fixed Cost, (c) Break-even Point, (d) Sales to earn a Profit of Rs. 45,000.