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How to find variable cost?

Cost Accounts 1016 views 3 replies

Given: Profit = Rs.12000, Fixed Cost = 24000, Margin of Safety = 30000.

 

Asked to findout new Break Even Point if selling price is reduced by 10%.

 

So, to findout  BEP we need variable cost. Can someone tell me how to get it?

Replies (3)

what is the units sold ?

Variable cost at present level of activity :54000

now it is easy to find 

Thanks gillbates.

 

Could also please tell me the proceedure you used to find that?

 

BTW, how to findout the Variable Cost from this details: Fixed Costs = Rs. 4000, BEP = Rs. 10000.

Variable Cost = 6000

Hint :  At BEP, Fixed cost = Contribution 

so cont. =4000

then Calculate PVR, for finding Sales 

which is 40%

Sales=10000


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