GOA INSTITUTE OF MANAGEMENT

Sanquelim Campus, Poriem, Sattari, Goa

Program: PGDM Exam: Test-1

Academic year: 2020-21 Weightage: 30%
Term: II Maximum Marks: 28
Section: A Duration: 30 Minutes
Subject: Cost and Management Accounting Date: 08.12.2020
Name of the instructor: Dr. Abhishek Ranga

QUESTIONS

1. From the following particulars, calculate breakeven point and breakeven sales -
Particulars:
Variable Cost unit - Rs. 12
Selling price per unit – Rs. 18
Total Fixed Cost – Rs. 60,000

2. From the following particulars, calculate total fixed cost and total cost at a level of 25,000 units
of production.
Particulars Number of units produced Total Cost
Level – I 20,000 17,600
Level – II 30,000 21,600

3. From the following particulars, find out the selling price per unit if breakeven point is to be
brought down to 9,000 units.
Particulars:
Variable Cost unit - Rs. 75
Selling price per unit – Rs. 100
Total Fixed Cost – Rs. 2,70,000

4. From the following particulars calculate breakeven point and also new breakeven point if selling
price is reduced by 10%.
Particulars:
Fixed Cost
Depreciation: Rs. 1,00,000
Salaries: Rs. 1,00,000
Variable Cost
Materials: Rs. 3 per unit
Labor: Rs. 2 per unit
Selling Price: Rs. 10 per unit

5. From the following particulars, calculate –

a. Contribution
b. Breakeven point
c. Margin of safety
d. Profit
Particulars:
Total Fixed Cost – Rs. 4,500

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 Total Variable Cost – Rs. 7,500
Total Sales – Rs. 15,000
Units Sold: 5,000
Also calculate the volume of sales to earn profit of Rs. 6,000.

6. From the following information, ascertain how much the value of sales must be increased to
achieve break even.
Particulars:
Total Fixed Cost – Rs. 1,80,000
Total Variable Cost – Rs. 2,50,000
Total Sales – Rs. 4,00,000
7. From the following information, calculate the actual level of sales.
Particulars:
Total fixed cost – Rs. 8,000
Profit earned: Rs. 2,000
Break even sales: Rs. 40,000

8. A company manufactures a single product having a marginal cost of Re. 0.75 a unit. Fixed costs
are Rs. 12,000. The market is such that up to 40,000 units can be sold at Rs. 1.50 per unit, but
additional sales must be made at Re. 1 a unit. There is a planned profit of Rs. 20,000. How many
units must be made and sold?

9. ABC Ltd. has fixed costs of Rs. 2,00,000. It has two products that it can sell, A and B. The
company sells these products at a rate of 2 units of A to 1 unit of B. the unit contribution is Re. 1
per unit for A and Rs. 2 per unit of B. How many units of A and B would be sold at the breakeven
point?

10. The ratio of variable cost to sales is 70%. The breakeven point occurs at 60% of the capacity
sales. Find the capacity sales when fixed costs are Rs. 90,000. Also compute profit at 75% of the
capacity sales.

11. From the following particulars, calculate the sales required to earn a profit of Rs. 1,20,000.
Particulars:
Sales: Rs. 6,00,000
Variable costs: Rs. 3,75,000
Fixed costs: Rs. 1,80,000

12. When volume is 3,000 units, average cost is Rs. 4 per unit. When volume is 4,000 units, average
cost is Rs. 3.50 per unit. The breakeven occurs at 5,000 units. Find the profit-volume (P/V) ratio.

13. A company has earned a contribution of Rs. 2,00,000 and profit of Rs. 1,50,000 on sales of Rs.
8,00,000. What is its margin of safety?

14. A company manufactures three products X, Y and Z. The unit selling prices of these products are
Rs. 100, Rs. 160 and Rs. 75 respectively. The corresponding unit variable costs are Rs. 50, Rs. 80
and Rs. 30 respectively. The proportions (quantity-wise) in which these products are
manufactured and sold are 20%, 30% and 50% respectively. The total fixed costs are Rs.
14,80,000. Calculate overall breakeven quantity and the product wise break-up of such quantity.

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15. Sales of a product amounts to 200 units per month at Rs. 10 per unit. Fixed overhead is Rs. 400
per month and variable cost Rs. 6 per unit. There is a proposal to reduce prices by 10%. Calculate
the present and future P/V ratios. How many units must be sold to maintain total profit?

ALL THE BEST

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