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  • Varoon FX23031 MA Assignment 3

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    Varoon R
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    This document contains two cases analyzing the break even point for company XYZ Ltd. Case 1 calculates ratios using a selling price of Rs. 125 per unit, variable cost of Rs. 100 per unit, and fixed cost of Rs. 500,000. The break even point is 50,000 units. Case 2 uses a selling price of Rs. 30 per unit, variable cost of Rs. 21 per unit and fixed cost of Rs. 360,000. The break even point for Case 2 is calculated to be 40,000 units.

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    This document contains two cases analyzing the break even point for company XYZ Ltd. Case 1 calculates ratios using a selling price of Rs. 125 per unit, variable cost of Rs. 100 per unit, and fixed cost of Rs. 500,000. The break even point is 50,000 units. Case 2 uses a selling price of Rs. 30 per unit, variable cost of Rs. 21 per unit and fixed cost of Rs. 360,000. The break even point for Case 2 is calculated to be 40,000 units.

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    4 views4 pages

    Varoon FX23031 MA Assignment 3

    Uploaded by

    Varoon R
    This document contains two cases analyzing the break even point for company XYZ Ltd. Case 1 calculates ratios using a selling price of Rs. 125 per unit, variable cost of Rs. 100 per unit, and fixed cost of Rs. 500,000. The break even point is 50,000 units. Case 2 uses a selling price of Rs. 30 per unit, variable cost of Rs. 21 per unit and fixed cost of Rs. 360,000. The break even point for Case 2 is calculated to be 40,000 units.

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    © All Rights Reserved
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    of 4

    Varoon Jude - FX23031

    Managerial Accounting - Assignement 3

    Break Even Analysis


    Case 1

    1. The following information is made available on XYZ ltd:


    Selling price per unit is Rs 125
    Variable cost per unit is Rs 100
    Fixed cost is Rs 500000
    Sales volume is 40000 units
    Calculate all the ratios under Break even analysis and verify the profit
    Selling Price
    Variable Cost
    Fixed Cost
    Volume

    Total Revenue
    TR

    Total Variable cost


    TVC

    Total Contribution

    Contrib/unit

    Profit

    BEP Volume

    Contribution Volume

    BEP Value

    MOS

    MOS Ratio

    Profit
    Case 2

    The following information is made available on XYZ ltd:


    Selling price per unit is Rs.30
    Variable cost per unit is Rs.21
    Fixed cost is Rs.360000
    Sales volume is 45000 units
    Calculate all the ratios under Break even analysis and verify the profit

    Selling Price
    Variable Cost
    Fixed Cost
    Volume

    Total Revenue
    TR

    Total Variable cost


    TVC

    Total Contribution

    Contrib/unit

    Profit

    BEP Volume

    Contribution Volume

    BEP Value

    MOS

    MOS Ratio

    Profit
    125 Rs
    100 Rs
    500000 Rs
    40000 Units

    Selling Price*unit volume


    5000000

    Varaible Cost * Unit Volume


    4000000

    TR - TVC
    1000000

    Sp/u-Vc/u
    25

    Total Contrib - TFC


    500000 BEP Volume 500000
    TFC/Contrib per unit Contribution Volume 0.2
    20000 BEP Value 2500000
    MOS 2500000
    Contrb Volume/SP MOS Ratio 100
    0.2 Profit 500000
    BEP Volume * SP per unit
    2500000
    TR - BEP Value
    2500000
    MOS/BEP*100
    100
    MOS * Contrib Ratio
    500000
    30 Rs
    21 Rs
    360000 Rs
    45000 Units

    Selling Price*unit volume


    1350000

    Varaible Cost * Unit Volume BEP Volume 40000


    945000 Contribution Volume 0.3
    BEP Value 1200000
    TR - TVC MOS 150000
    405000 MOS Ratio 12.5
    Profit 45000
    Sp/u-Vc/u
    9

    Total Contrib - TFC


    45000
    TFC/Contrib per unit
    40000

    Contrb Volume/SP
    0.3
    BEP Volume * SP per unit
    1200000
    TR - BEP Value
    150000
    MOS/BEP*100
    12.5
    MOS * Contrib Ratio
    45000

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