costing problem-need help 2 solve

hi friends,

need ur help 2 solve the below pblm on marginal costing..thanx in advance..

Question

The Cost-volume-profit relationship of a company is described by the equation y= Rs.240000 +0.7x ,in which x represents sales revenue and y is the total cost as the sales volume represented by x. find out 1) P/V ratio 2) Break-even point.

Replies (6)

HI pavithra

At in the given equation

total revenue= FC + VC * no of units

Sales 100

VC        70

PVR    30

 

BEP=fc/pvr

240000/.3

=800000

thnx a lot kaushik

Hi Pavithra,

Hope this table helps in solving Marginal costing Problems.

1)

Total Sales      =    BEP Sales    +      MOS Sales

Less:   VC                       VC                            VC

--------------------------------------------------------------------

Contribution   =         F C             +        Profit

--------------------------------------------------------------------

2)

       Total Sales             =    BEP Sales    +      MOS Sales

Multiply by :   PVR                       PVR                      PVR

--------------------------------------------------------------------

       Contribution   =         F C             +        Profit

--------------------------------------------------------------------

3)

         Contribution   =                F C             +        Profit   

Divided by:   PVR                       PVR                      PVR

--------------------------------------------------------------------

       Total Sales             =    BEP Sales    +      MOS Sales

 

--------------------------------------------------------------------

Keep this logic in mind and rotate the formulas to find the missing figures.. regards.. saida

Hi Pavithra,

Hope this table helps in solving Marginal costing Problems.

1)

Total Sales      =    BEP Sales    +      MOS Sales

Less:   VC                       VC                            VC

--------------------------------------------------------------------

Contribution   =         F C             +        Profit

--------------------------------------------------------------------

2)

       Total Sales             =    BEP Sales    +      MOS Sales

Multiply by :   PVR                       PVR                      PVR

--------------------------------------------------------------------

       Contribution   =         F C             +        Profit

--------------------------------------------------------------------

3)

         Contribution   =                F C             +        Profit   

Divided by:   PVR                       PVR                      PVR

--------------------------------------------------------------------

       Total Sales             =    BEP Sales    +      MOS Sales

 

--------------------------------------------------------------------

Keep this logic in mind and rotate the formulas to find the missing figures.. regards.. saida

Thanks a lot

Can someone help in solving this.

Equilibrium in commodity markets is attained when Y = Rs.850-2500r; and equilibrium is attained in the money markets when Y = Rs.500 + 5M + 1000r, where Y is real income, r is the rate of interest and M is real money supply full employment equilibrium exists at Rs.650 real income.  If the nominal money supply is Rs.200 and the price level is 1,

 

(i)                  Is the economy operating with inflationary or deflationary condition?

(ii)                At what price level will there be simultaneous equilibrium in all markets?

 

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