1The following information is given by Star Ltd.: Margin of Safety Rs.

1,87,500 Total Cost

Rs. 1,93,750 Margin of Safety 3,750 units Break-even Sales 1,250 units Required: Calculate
Profit, P/V Ratio, BEP Sales (in Rs.) and Fixed Cost.
2. From the following find out the amount of profit earned
Fixed Cost - 500000
Variable cost- Rs.10 per unit
Selling price- rs. 15 per unit
Output level- 150000 units
3. find profit
Sales- rs. 80000
Marginal cost (variable cost)- Rs.60000
Break even – Rs.60000
4. Calculate breakeven point Rs.
Variable cost 12
Fixed Expense 60000
Selling price per unit 18
5. A company estimates that next year it will earn a profit of Rs.50,000 . The budgeted fixed
cost and sales are Rs. 2,50,000 and Rs. 9,93,000 respectively . Find out the break-even point
for the company.
6.From the following particulars , find out the selling price per unit if B.E.P. is to be brought
down to 9000 units.
Rs.
Variable cost per unit 75
Fixed expences 2,70,000
Selling price per unit 100
7. From the following data ,calculate break –even point expressed in terms of units and also
the new B.E.P. ,if selling price is reduced by 10%.
Fixed Rs.: Rs.
Depreciation 1,00,000
Salaries 1,00,000
Variable Rs. :
Materials 3 Per unit
Labour 2 Per unit
Selling price 10 per unit

8. Marginal Cost Rs.2,400

Selling price Rs. 3000
Calculate P/V ratio.
9. The sales turnover and profits during two periods are as under :
Period I : Sales Rs.20 lakhs ; Profit Rs.2 lakhs
Period II : Sales Rs.30 lakhs ; Profit Rs.4 lakhs
Calculate P/V ratio.
10. The following data are obtained from the records of a company :
First year Second year
Rs. Rs.
Sales 80,000 90,000
Profit 10,000 14,000
Calculate the break – even point.
11.You are required to calculate the break –even point in the following case :
The fixed cost for the year is Rs.80,000 ; Variable cost per unit for the single product being
made is Rs.4 . Estimated sales for the period are valued at Rs.2 ,00,000. The number of units
involved coincides with the expected volume of output . Each unit sells at Rs.20.
Calculate break – even point by applying important formulae.
12.A company earned a profit of Rs. 30,000 during the year 2003 -04 .If the marginal cost
and selling price of a product are Rs.8 and Rs.10 per unit respectively , find out the amount
of margin of safety.
13. From the following details find out (a) profit volume ratio,(b)B.E.P. ,(C)margin of safety.
Rs.
Sales 1,00,000
Total costs 80,000
Fixed costs 20,000
Net profit 20,000
14.The following information was obtained from a company in a certain year :
Rs.
 Sales 1,00,000
Variable costs 60,000
Fixed costs 30,000
Find the P/V ratio , break –even point and margin of safety.
15. The following information is obtained from a company for 2004 :
Rs.
Sales 20,000
Variable costs 10,000
Fixed costs 6,000
(a) Find P/V ratio , break- even point and margin of safety at this level ,and the effect of ;
(i) 20% decrease in fixed costs;
(ii)10% increase in fixed costs;
(iii)10% decrease in variable costs;
(iv) 10% increase in selling price;
(v)10%increase in selling price together with an increase of fixed overheads by Rs.1200;
(vi) 10% decrease in sales price;
(vii)10% decrease in sales price accompanied by 10% decrease in variable costs.
16.You are given the following data for a costing year of a factory.
Budget output 1,00,000units
Fixed expenses Rs.5,00,000
Variable expenses Rs.10 per unit
Selling price Rs.20 per unit
Draw a break even chart showing the break –even point.If the selling price is reduced to
Rs.18 per unit ,what will be the new break-even point.
17.The following figures relate to a particular year working at 100% capacity level in a
manufacturing concern:
Rs.
Fixed overheads 1,20,000
Variable overheads 2,00,000
Direct wages 1,50,000
Direct materials 4,10,000
Sales 10,00,000
Represent the above figures on the break-even chart and determine from the chart the break-
even point : verify your results by calculation.
18.Draw the profit volume graph and find out P/V ratio with the following information:
Output 3000units
Volume of sales Rs.7,500
Variable cost Rs.1,500
Fixed costs Rs.1,500
19.The following information in respect of product A and product B of a firm is given:
Product A Product B
Sales price Rs.75 Rs.48
Direct material Rs.30 Rs.30
Direct labour hours (Re.0.50 per hour) 15 hours 2 hours
Variable overhead – 100% of direct wages
Fixed overhead Rs.3000
Present the above information to show the profitability of product during labour shortage.
20.P/V ratio is 60%and the marginal cost of the product is Rs.50. What will be the selling
price?
21.From the following data calculate :
1.P/V ratio
2.Profit when sales are Rs.20,000
3. New break –even point if selling price is reduced by 20%
Fixed expenses Rs.4000
Break-even point Rs.10,000
22.A company has a P/V ratio of 40%.By what percentage must sales be increased to offset :
(a) 10% reduction in selling price
(b)20% reduction in selling price
23.A company produces and sells 100 units of A per month at Rs.20. Marginal cost per unit is
Rs.12.00 and fixed cost are Rs.300 per month . It is proposed to reduce the selling price by
20%.Find the additional sales required to earn the same profit as before.