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#### Related QuestionsVIEW ALL [3]

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:

Material | (Rs.) 10 |

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.

The Sales Turnover and Total Cost of M/s. ABC Ltd. are as under :

Year |
Sales(Rs.) |
Total Cost (Rs.) |

2017 | 1,50,000 | 1,20,000 |

2018 | 1,80,000 | 1,42,500 |

**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.

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