Professional Documents
Culture Documents
Solution # 2
(i)
Solution # 3
(i)
(ii)
Solution # 4
(i)
(ii)
Rs.
3,680,000
2,760,000
920,000
500,000
420,000
Solution # 5
(a) Break even sales in rupees
= Fixed Cost / CM%
= 20,000 / 25%
= Rs.80,000
(b) Margin of safety in Rupees and percentage
Margin of safety = Budgeted sales Break even sales
= 150,000 80,000
= Rs.70,000
Margin of safety in % = (Budgeted sales Break even sales) / Budgeted sales
= (150,000 80,000) / 150,000 x 100
= 46.67%
Solution # 6
(a) Fixed expense for the year
Beak even sales = Fixed cost / CM%
2,000,000 = Fixed cost / 40%
Fixed cost = Rs.800,000
(b) Sales for the year
Sales for the year = (Fixed cost + Profit) / CM%
= (800,000 + 320,000) / 40%
= Rs.2,800,000
(c) Variable expense for the year
CM% = Sales Variable cost
Sales
40% = 2,800,000 Variable cost
2,800,000
Variable cost = Rs.1,680,000
(d) Margin of safety ratio
Margin of safety ratio = (Actual sales Breakeven sales) / Actual sales x 100
= (2,800,000 2,000,000) / 2,800,000 x 100
= 28.57%
Solution # 7
Sales (7,000 x 16)
Less: Variable cost (7,000 x 10)
CM
Less: Fixed Cost
Profit
Rs.
112,000
(70,000)
42,000
(42,000)
----------
Solution # 8
Break even point in units = Fixed cost / CM per unit
= 20,000 / 0.5
= 40,000 units
Solution # 9
(i)
Rs.
193,600
(ii)
Labour
Overheads
Administration
Total cost (i.e. 82% of sales)
Add: Commission expense (8% of sales)
(393,600 / 82%) x 8%
Add: Net profit (10% of sales)
(393,600 / 82%) x 10%
Total sales value
90,000
80,000
30,000
393,600
38,400
48,000
480,000
Rs.12 per unit
Fixed Costs
Labour
Overhead
Administration
Total fixed cost
Rs.
440,000
193,600
63,000
51,200
9,000
316,800
123,200
27,000
28,800
21,000
76,800