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Ruby Industries Ltd. furnish the following information for the year 2018.
Sales | (Rs.) 2,00,000 |
Variable Cost | (Rs.) 1,00,000 |
Fixed Cost | (Rs.) 50,000 |
(1) Find: PN Ratio, BEP (Sales) and Margin of Safety.
(2) Calculate the effect of the following :
(a) 10% increase in Selling:Price,
(b) 5% Decrease in Variable Cost, and
( c) 10% Decrease in Fixed Cost.
A company has 3 alternative choices of Product Mix. It produces 2 Products, A and B. It can produce either: (a) 200 units of A and 400 units of B, (b) 300 units of A and 300 units of B, (c) 400 units of A and 200 units of B.
Other details:
A(Rs.) | A(Rs.) | |
(1) Selling Price | 400 | 300 |
(2) Variable Cost | 320 | 240 |
(3) Fixed Cost | (Rs.)16,000 |
You have to decide the best profitable mix.