SHARJAH INDIAN SCHOOL – Br.

Juwaiza
ENTREPREURSHIP WORKSHEET-UNIT 5
BUSINESS ARITHMATIC
1. ‘The Fancy Store’ a readymade garments retail shop sold 8,000 shirts at Rs 400/- per shirt
during the year ended 31st March, 2014. Cost of placing an order and receiving goods is Rs
2,000/- per order. Inventory holding cost is Rs 500/- per year. Calculate the ‘Economic Order
Quantity’ for ‘the Fancy Store’ [2015 Delhi]

2. ‘Nomy India Ltd.’ are the producers of different sizes of televisions. From the information
given below, calculate the ‘Break-Even Quantity’ of the T.V. sets manufactured per month:
42 20 Fixed expenses per
[2015 Delhi] Unit variable cost month
Size of T.V. sets
Unit selling price (in thousands) (in thousands)
(in thousands) 4
2 6
24 5 7 8
32 10 12 9
36 15 14

3. Raj Singh has started a restaurant on a National Highway in the name of ‘Desi Dhaba’ by
spending RS 25,00,000. He invested RS 10,00,000 of his own and took a loan of RS 15,00,000
from Dena Bank, @ 6% per annum. His monthly sales revenue is RS 17,00,000 and cost of
goods sold is RS 9,00,000. He pays monthly salary of RS 3,00,000 to his employees. The tax
rate is 25%.You are required to calculate:
(a) Return on Investment and
(b) Return on Equity for Raj Singh [2015 Delhi]

4. Aditi started a beauty parlor business. She spend Rs.30,00,000/- to open the parlor of
which she invested Rs.14,00,000/- of her own money and borrowed a loan for Rs.16
,00,000/-. Interest rate per annum is 14%. Sales revenue per month is Rs. 1,60,000/-. Cost
of goods sold is Rs. 60,000/- per month. Fixed expenses for that month is Rs. 60,000/-
(salary Rs.40,000/-, rent and utility Rs. 20,000/-), depreciation Rs.30,000/- and tax @ 15%.

5. Ms. Rosy is a readymade garments manufacturer. Her Annual Usage rate is 225Pcs. The
cost of placing each order is Rs.8/- and the carrying cost is Rs.4 per unit. Calculate the
Economic Order Quantity (EOQ). How does calculating EOQ facilitate budgeting?

6 The School Gear Ltd. manufactures three products – Tiffin covers; Bottle covers; Pencil
pouch. The variable expenses and sales prices of all these products are given below:
Tiffin covers Bottle covers Pencil pouch
Salesprice/unit 200 100 75 Variable Cost /unit 100 60 25 Sales mix% 20% 50% 30%
The total fixed expenses of the company are Rs.55, 000 per month. Compute the
break-even point of company in units and rupees for the coming month.

7. Jalalji an entrepreneur started a new website ‘Fashionate Shirts’ to sell readymade shirts.
In the first year he sold 1200 shirts at the rate of Rs 500 each. His cost of placing an order
and receiving the shirts is Rs1000 per order. If the Economic Order Quantity is 200 shirts,
find out the inventory holding cost per year.
8. Following information is related to sales - mix of registers having 100 pages, 200 pages
and 300 pages: Calculate BEP [2016 Delhi]
register 100pg 200pg 300pg Sales price/unit 30 42 72 Variable cost/unit 18
28 38 Sales mix% 20% 20% 60% Fixed cost 80,000
9. The following information is related to Ayush Generic Medicines, a chemist shop selling
generic medicines. On 15.12.2016 medicines as per details are given below: No of
customers Per customer billed amount(in Rs) 15 370
20 430
45 500
25 1,000
95 1,200
Calculate the average amount of medicine sold per customer.

10. The following figures are extracted from Janata foods Limited.
Stock of raw materials 1,50.000
Short term loans 1,83,000
Trade creditors 96,000
Trade debtors 2,25,000
Dividend payable 1,50,000
Tax payable 1,32,000
Short term investments 2,28,000
Calculate gross working capital and net working capital.

11.Harsha started her herbal beauty products shop in Chandigarh with a capital of Rs
9,00,000.She took a loan of Rs 5,00,000 from SBI at 9% interest per annum.During the year
ended 31st march 2016 her sales were 20,90,000 and the cost of goods sold was Rs
15,30,000.she paid monthly rent of Rs11,000 and monthly Salary of Rs 25,000 to the employees.
The tax rate is 30% calculate ROI AND ROE.

12. Pankaj started a new website. In the first year he sold 2400 bulbs at the rate of Rs 100 each. Cost
of placing the order is Rs 500/-.The economic order quantity is 200 bulbs. Find the inventory holding
cost per year.