prob4 From the eos of ompary datibtng pt he Z z SSS aE {stew totems cao te thermore Mah2018- A ‘Sales for the month + Tk. 7910000 | Opening eckaron222039 2500 )rer@ 1.2000 seach aston tives @ re30 ach 37 otto res @ 13120 a ch : = aes Closing stock as on 31% March,2019: 130000 litres, 5 Genera Admiitraton xen or ei themorthef Meck 2019TAAT20D a From the norman gen above, wok ut he otolng ie {nero nd ro matad einry vation : Surg ptg otto ing gone he andthe fe (0) alae fling stoeea0n3122019 F (0) Conetsastoraeh nis a {rrtortos trae 2018 El Scanned with CamScanner‘You are asked to show the price ina statement at which the ‘company earn 10% profiton sles. ‘A. company manufactured and sold {000Tabe Fan during ‘the year 2018 with the following ntrmation- 1% Diet Materia 0000 Direct Wages 120000 Manufacturing Expenses 50000 Saaies éeoo0 Genera Expenses 20000 Rent, Rate andsurance 10000 seine tapenses seme PFODS sales ‘0000 ‘The company plans to manufscture 1200 Table in the year 2018.the following addtional Information are avilable {0} Price of materials wil rise by 20% on the previous years" level. {8} Wage rates will go up by 5%. {€)__ Manufacturing expenses wil rise In proportion to ‘the combined cost of materials and wages. Scanned with CamScanner een) Aro fedeeProbiemé mon ‘A manufacturing compeny provides you with a summary ofits alas Tk ir production costs at three production levels: haere camara neato = Costitem s000units2000umite 3000 nite ues el Rs Rs Rs. soe wt 50 nes = = a sono sooo soon Siamese aes 8 000 1800 200 iencnmneaeen c 3000 000 2000 — — Indiat the cost behavior or the cost tems. a se ‘What would be the total cost ifthe company produces larcoanene = 2500 its? ene 2 Scanned with CamScannerProblem 7 The cost of a scooter for the year 2017,the selling price being. s.24000 each , is given below: Direct materi 50% of total cost Wages 30% of total cost Overhead charges 20% of total cost Profit 20% on selling price In 2018, the price of materials and labour rate shall by 20% and 10% respectively. |. What will be the rate of profit ifthe selling price remains unchanged? ji, What will be the selling price ifthe rate of profit remains unchanged? Problem 8: ‘A company operates at 50% of capacity utilization.At this fo 2enensze is waeesosotcon smo 9. con Stoner ye sing proms onan | beeen Gea, 18 [23 woge(itrcene) om ecm |e beeen aera 7 | oge( intros) on [sonneor ents) = Scanned with CamScannerran Aempn ge painters hn -|[-|= ‘ar apetmetonon ero hea an te taevaw npn gepecenn carbs = =—pete Sion oe canto ata ose w_ [oe [oe Peseta F seapeenpantn i re = Scanned with CamScannerete ABC Uh ee ofc departed Po ‘ac deparmert felon dare am eee ‘tte oopry rs erento diatedenawapeeye te dentin nae = |S ee Sorester ae ntoncreneneyniesrh ea eee freee oe eee ee oe bree tts rer re he Scanned with CamScannerPeto eli atin corps epi hr ‘i rn gang taper 1 Spr eer on 1 Sherr aes ena te ep 50 p egntngaathn| [em eet Scanned with CamScannerProblem : 4. Alpha Ltd. furnished the following information : Selling price —Rs. 10 per unit Variable cost —Rs. 6 per unit isexpected that variable cost will increase by 204%. What will be the selling price per unit ifine company wishes to maintain the same P/V ratio, [C.U. B. Com. (Hons.), 2004) Solution + __Constribution(C) 199 - Rs10—Rs.6 _ Present P/V Ratio= "array 100 = Reg ™ 100 = 40% * [tis expected that —— Variable cost per unit = Rs. 6 + 20% of Rs. 6 = Rs. 7-20 and, P/V Ratio = 40% x 100 or 4= $= 7-79 100 40xS or OXS 25720 Scanned with Camsc ~Rs.16,000 4,000 For 2,500 hours (see working) 6240 | 2-496 Variable Expenses : , Indirect wages and materials (sie) 0200 seiignl (5:90,000+Rs.10,000—Rs.5,000),__1_J Deprecit . . . io TOyears * 3500 hours 3800 Power (20 units x Re. 0:50) 10-000 Machine Hour Rate Scanned with CamScannerProblem : 9, X Ltd. sells 8000 units of its products at a loss of Rs. 16,000. Variable cost per unit is Rs.12 and Total fixed cost is Rs, 48,000. Calculate :— (i) Profit-volume Ratio, . Gi) The number of units to be sold to earn a profit of Rs.10,000. Gi) The amount of profit from a sale of 20,000 units. (C.U. B.Com. (Hons.), 1999] Solution : © Working Notes : We know, S=F+V+Por-L Here, as loss has been incurred, S=F+V-L Rs. Total Fixed cost 48,000 Total Variable costs for 8000 units 96,000 (8000 units x Rs.12) Total costs for 8000 units 144,000 Less : Loss 16,000 Total selling price for 8000 units —_1,28,000 1,28,000 .'. Selling Price per unit = * Goats = R16. Scanned with CamScannersolution : prob6é Ww) Calculation of Total Variable costs & E veil costs Variable costs: Fixed costs Rs. Rs. Rs. Rs. (L008 of Rs.30000) | 30,000, Nil (50% of Rs, 20000) | 10,000 | (50% of Rs. 20000) | 10,000 (75% of Rs, 4000) | 3,000 | (25%of Rs. 4000) } 1,000 ¢ overhead, Nil | (100% of Rs. 5754) | 5,754 Seltin 2 & Distibution overhead (0% of Rs.1500) | 600 | (60% of Rs, 1500)} 900 ‘otal 43,600 17,654 (8) Total selling price for 200 units of output Rs, Rs. 200 units x Rs, 400) 80,000 Less : Total variable cost for 200 units of output 43,600 las ascertained in (a) above} — Total Contribution for 200 units of output 36,400 ys produced - s.56.400 = Rs, 182, ¢. Contribution per unit = Fetal Contribution (0 PIV Ratio = © x 100 5 io = B8:36,400 182 = 1 Mere, PIV Ratio = “Sr Taq % 100. or, 482 x 100 = 45.50%. (@) We know— 5. ; _ Total Fixed costs . FE BEP sales (in value) = TRS « 100 ( Le. rye 100) Here, BEP sales (in value) = 42654 x 109 ['" As ascertained in (a) above, Fixed cost = Rs.17654] -'. Break-even sales (in value) = Rs, 38,800 Again, BEP sales (in units) = Conan para Here, BEP sales (in units) = nee = 97 units ['.’ Contribution/unit <. Break-even sales (in units) = 97 units. = Rs.182] Scanned with CamScanner