MARGINAL COSTING


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Prepare chart from the following information. Selling price per unit is Rs. 30 Variable cost per unit is Rs. 15 Fixed cost Rs. 15000

PROF. KUMARASWAMY BODA

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A ltd produces plastic buckets. Variable cost per bucket is Rs. 20. fixed cost Rs. 50,000 per annum. Capacity 2000 buckets. Selling price per bucket Rs. 70. Find out p/v ratio, break even point Find the number of buckets to be sold to get a profit of Rs. 30,000.
PROF. KUMARASWAMY BODA

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A garment company is currently selling 24000 shirts annually. Selling price per unit 40 Variable cost per unit 25 Staff salaries 1,20, 000 general office exp 80,000 and advertising 40,000. Calculate breakeven point and margin of safety. Assume 20, 000 shirts were sold during the year. Find out the profits of the firm. If it is decided to introduce selling commission of Rs. 3 per shirt, how many shirts would require to be sold to earn a net income of Rs. 15000.
PROF. KUMARASWAMY BODA

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From the following data calculate Break even point No. Of units to be sold to earn a profit of Rs. 60,000 per annum How many units to be sold to earn a net income of 10% of sales Sales price 20 per unit, variable cost 14 per unit, fixed factory overhead Rs. 540,000 and selling exp 2,52,000.
PROF. KUMARASWAMY BODA

Sales in units 10, 000  Selling price per unit 2  Variable cost per unit 1. 50  Fixed expenses Rs. 3000.  Calculate BEP and margin of safety  Selling price has reduced by 10%, calculate revised profit.  Selling price has increased by 20%, calculate revised profit.  Selling price and variable exp increased by 10%, calculate revised profit.

PROF. KUMARASWAMY BODA

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From the following data calculate Break even point No. Of units to be sold to earn a profit of Rs. 90,000 per annum How many units to be sold to earn a net income of 20% of sales Sales price 30 per unit, variable cost 20 per unit, fixed overhead Rs. 500,000.

PROF. KUMARASWAMY BODA

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A company budgets for a production of 150,000 units. The variable cost perunit Rs.14 and the fixed cost Rs.2 per unit. The company fixes its selling price to fetch a profit of 15% on cost. calculate# Break even point and profit volume ratio If it reduces the selling price by 5% how the revised selling price affect BEP and PV. If a profit increase of 10% is desired more than the budget, what should be the sales at the reduced prices.
PROF. KUMARASWAMY BODA

A ltd manufactures a machine which has a variable cost structure are as follows: Material Rs.40, labour Rs.10, variable overhead Rs.4 and selling price Rs.90. Sales for the current year are Rs.13,50,000 and fixed cost Rs.140,000. Material cost are expected to increase for the next year by 7.5%, labour 10%, Variable 5% and fixed overhead by 3%. Calculate new selling price if the current P/V ratio is to be maintained. Calculate qty to be sold in the next year to yield the same amt of profit as in current year assuming selling price to remain at Rs.90.
PROF. KUMARASWAMY BODA

Following figure relate to a company manufacturing a varied range of product. Year 2007 total cost 19,83,600 and sales 22,23,000. Year 2008 total cost 21,43,200 and sales 24,51,000. Calculate p/v ratio, fixed cost, break even point and margin of safety.
PROF. KUMARASWAMY BODA

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