PLZ SOVLE THIS MARGIANL COSTING PROBLEM
This query is : Resolved
CA Abhishek Singh
(Querist)
02 April 2010
A COMPANY HAS A FIXED COST OF RS.300000.
ON SALE OF 15000 UNITS WHICH IS EQUAL TO 40% OF MARGIN OF SAFETY, IT EARNED A PROFIT OF RS.60000/-.
CALCULATE THE FOLLOWING
1) BEP IN UNITS
2) TOTAL PRESENT SALES IN UNITS
(BCOM,MUMBAI OCT 2007.)
THANX IN ADVANCE
MY ID abhipcc@rediffmail.com
ON SALE OF 15000 UNITS WHICH IS EQUAL TO 40% OF MARGIN OF SAFETY, IT EARNED A PROFIT OF RS.60000/-.
CALCULATE THE FOLLOWING
1) BEP IN UNITS
2) TOTAL PRESENT SALES IN UNITS
(BCOM,MUMBAI OCT 2007.)
THANX IN ADVANCE
MY ID abhipcc@rediffmail.com
CMA Ramesh Krishnan
(Expert)
02 April 2010
In the problem 40 % of margin of saftey represents 15000 units and Rs.60000/- profit.in the margin of saftey sales, the contribution doesnot include fixed cost so total contribution is profit only.contribution per unit is
60000/15000 = Rs.4 Per unit
and the BEP in unit is F.C / contribution per unit
so 300000/4 = 75000 units
For 15000 units is 40 % of MOS so total margin of saftey is 15000/.4=37500 units
so total persent sales is (75000+37500)=112500 units
60000/15000 = Rs.4 Per unit
and the BEP in unit is F.C / contribution per unit
so 300000/4 = 75000 units
For 15000 units is 40 % of MOS so total margin of saftey is 15000/.4=37500 units
so total persent sales is (75000+37500)=112500 units
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