Net realization Variable Cost (Rs.

per unit) Quantity Sold

(Rs.) annually
Material Labour Others
Bronze 25 10 5 4 1,100,000
Silver 35 14 5 5 220,000
Gold 55 18 5 6 90,000

Fixed Costs 6,600,000

Result
Changes in Variables Overall Contribution % 28.3%
Enter % Break-even Point (Value) 23,326,585
Change in Material Prices Margin of Safety (Value) 16,823,415
Change in Net Realisation Margin of Safety % 41.9%
Change in Other Variable Costs
Change in Fixed Costs

Variables

CALCULATIONS

Details Bronze Silver Gold Aggregate

Quantity Sold 1,100,000 220,000 90,000 1,410,000
Net Realization per unit 25.00 35.00 55.00
Variable Cost per unit 19.00 24.00 29.00
Contribution per unit 6.00 11.00 26.00
24.0% 31.4% 47.3%
Net Realization 27,500,000 7,700,000 4,950,000 40,150,000
Variable Costs 20,900,000 5,280,000 2,610,000 28,790,000

Contribution 6,600,000 2,420,000 2,340,000 11,360,000

Contribution % 24.0% 31.4% 47.3% 28.3%

Total Fixed Costs 6,600,000 (Operating 50,00,000, Financial 16,00

Break-Even Point (Value) 23,326,585

Margin of Safety (Value) 16,823,415 41.9%

Contribution Income Statement

Sales 40,150,000

Less: Variable Costs 28,790,000

Contribution 11,360,000

Operating Fixed Cost 5,000,000

Profit Before Financial Fixed Cost 6,360,000

Financial Fixed Cost 1,600,000

Profit Before Tax 4,760,000

Operating Leverage 1.79 Change in PBFFC

Financial Leverage 1.34

Total Leverage 2.39 Change in PBT

ating 50,00,000, Financial 16,00,000)

Change in Sales

40,150,000

28,790,000

11,360,000

5,000,000

6,360,000
1,600,000

4,760,000

0.0%

0.0%