Cost accounting help!!

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can someone plz help me with this problem....plz provide me the correct solution

A company produces a single product and sells it at Rs.200 each. The variable cost of the product is Rs.120 per unit and the fixed cost for the year is Rs.96,000.

Calculate
1) P/V ratio
2) Sales at break even point
3) Sales unit required to earn a target net profit of Rs.1,20,000
4) Sales units required to earn a target net profit of Rs.1,00,000 after income tax, assuming income tax rate to be 50%.
5) Profit at sales of Rs.7,00,000.

Replies (2)

Sale Price=200

V.Cost=120

so Contribution is80(200-120)

and

(!) P/V Ration = Contribuion / sale X100 =80/200*100=40%

(2) BEP(In Units)= Fixed Cost / contribution per unit = 96000/80=1200 units

In= 1200unitsXRs. 200= 2,40,000

(3) SAle for a desired profit of1,20,000 would be

(Fixed cost+D.Profit)/P/V ratio = (96,000+1,20,000)/40% ,  =5,40,000

(4) Profit at a sale of7,00,000 would by

7,00,000*.40-96000  = 1,84,000 ( Sale Xp/v ration-FC)

(5) net profit after TAX  is 1,00,000 so before tax we need to earn Rs. 2,00,000

So logic is same , we need a desired profit Rs. 2,00,000

It would be (96000+200000)/.40=Rs. 7,40,000

 

Hope your problem solved

Sale Price=200

V.Cost=120

so Contribution is80(200-120)

and

(!) P/V Ration = Contribuion / sale X100

=80/200*100=40%

(2) BEP(In Units)=

Fixed Cost / contribution per unit = 96000/80=1200 units

In= 1200unitsXRs. 200= 2,40,000

(3) SAle for a desired profit of1,20,000 would be

(Fixed cost+D.Profit)/P/V ratio = (96,000+1,20,000)/40% ,  =5,40,000

(4) Profit at a sale of7,00,000 would by

7,00,000*.40-96000  = 1,84,000 ( Sale Xp/v ration-FC)

(5) net profit after TAX  is 1,00,000 so before tax we need to earn Rs. 2,00,000

 we need a desired profit Rs. 2,00,000

It would be (96000+200000)/.40=Rs. 7,40,000


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