6.

COST-VOLUME PROFIT (CVP) ANALYSIS

Selling Price=90 taka per fries

Total variable cost= 30 taka per fries
Contribution Margin= Selling Price-Total Variable cost
90-30= Tk. 60 per fries

 CM Ratio= Contribution margin/Selling price

=60/90
=66%

BREAK-EVEN POINTS

Contribution Margin= 60 taka per fries

Fixed Expense = Salary expense+ Electric bill+ Rent
=75000+ 25000+50000
=150000*20% [ as they use certain amount for fries]
=Tk. 30000

Break-even point in unit= Fixed expense/Contribution margin

=30000/60
=500 units of fries
Break-even point in sales= Fixed expense/CM ratio
=30000/66%
 =45,454.54
=Tk. 45,454 (rounded)
MARGIN OF SAFETY:
Break-even unit= 500
Break-even sales = 500*90= 45000 taka
Total sales=90 taka*25units per day*30 days= 67500 taka

Margin of safety in sales=Total sales -Break even sales

=67500-45000
=22500 taka
Margin of safety in percentage= Margin of safety in sales/total sales
=22500/67500
=33%