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Marginal Costing - Exercises
Marginal Costing - Exercises
C 4
P.V .Ratio 100 100 40%
S 10
Fixed Expenses 1,00,000
B. E. P. in A m o u n t 2,50,000
P / V Ratio 40%
QUESTION - 2
PARTICULARS AMOUNT IN
Rs.
ESTIMATED SALES 10,00,000
Fixed Overheads for the year is Rs. 20000. Units sold is 10,000. Find:
i. Marginal Cost
ii. Contribution per unit
iii. Variable cost
iv. Total Contribution
v. Net Profit
Answer 3
1. Marginal Cost= Mat + Labour +Variable Overheads=
25+10+5 = 40
2. Contribution per unit = S – M.C. = 50 – 40=10
3. Total Variable Cost = 40 x 10,000 = 4,00,000
4. Total Contribution = C x Units = 10 x10,000 =
1,00,000
5. Net Profit = Total Contribution – Fixed Overhead =
1,00,000 – 20,000 = 80,000
QUESTION- 4
PARTICULARS (Per Unit) AMOUNT
(Rs.)
MATERIALS 60
LABOUR 20
VARIABLE 20
OVERHEADS
FIXED OVERHEADS 50
PROFIT 50
SELLING PRICE 200
C S V 180 100 80
F P 50,00,000 50,00,000 1,00,00,000
Re quired Sales to earn same amount of Pr ofit 1,25,000 cycles
C 80 80
C S V 160 100 60
1,00,00,000
cycles 1,66,667 cycles
60
QUESTION - 5
The total cost and profits during two period were as follows:
PARTICULARS PERIOD –I PERIOD – II
AMOUNT AMOUNT
Calculate:
i. P/V Ratio
ii. Break Even Sales
iii. Sales required to earn a profit of Rs.1,25,000
iv. Profit earned when sales are Rs. 3,50,000
Answer - 5
Change in Pr ofit
P /V Ratio 100 50000 100 20%
Change in Sales 250000
F 50000
B.E.P.Sale 2,50,000
P / V Ra tio 20%
1995.
Rs
…………..
5,13,000 32,400
Second half
…………..
From the above table you are required to compute the following assuming that the fixed
(d) Variable cost for first and second half of the year.
Rs
…………..
5,13,000 32,400
Second half
1,08,000 21,600
…………..
Difference
…………..
= 21,600/1,08,000*100 =20%
S*(S/V) = F+P
4,05,000*20/100 = F+10,800
Or 81,000 = F+10,800
= 1,04,400/20% = Rs 7,02,000
Or 4,05,000-81,000 = VC
Or VC = Rs 3,24,000
(ii) For the 2nd half
5,13,000-VC = 70,200+32,400
5,13,000-VC = 1,02,600
5,13,000-1,02,600 = VC
VC = Rs 4,10,400
3,24,000*20% = 1,40,400+Profit/Loss
64,800 = 1,40,400+Profit/Loss
Loss = Rs 75,600
Sales*(20%) = 1,40,400+54,000
Sales*20/100 = 1,94,400
=$20,250
1,350
Sales $25
mix
Example :
BEP = Fixed Costs
Sales mix CM
= $200,000
$25
Of what products: