marginal costing

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Q1.Ramya Ltd furnishes. production=10000 units, sales=10000 units, selling price rs 12 per unit
variable cost rs 6 per unit
fixd cost rs 40000/annum
normal capacity rs 10000 units
profit/loss under marginal costing??

Q.2 In a purely competitive market,10000 pocket transistors can be manufactured and sold and certain profit is generated. it is estimated that 2000 transistors need to be manufactured and sold in a monopoly to earn same profit.
profit under both is targeted to rs 200000.
variable cost per transistors is 100 and total fixd cost rs 37000
selling price in competitive market?

Q.3 find pv ratio
year 2015: sales rs 50lakh, profit 5lakh
year 2016: sales rs 75lakh,profit 10lakh


Q.4which of these are advantages of marginal costing
pricing decision
true profit
difficult to classify
ignores time value
Break even analysis
contribution is not final
control over expenditure
Replies (3)
q.1 proft rs 20000
q.2 123.70
q.3 20%

Marginal cost is Prime cost + Variable cost 

so VC is =6*10000, = 60000

Selling price is 12*10000= 120000

So its Profit.

If My Ans is wrong, Pls text me a correct ans.

Thank you,

Q3. PV Ratio Abbre is Profit Volume Ratio

PV Ratio = Profit/Sales*100

2015- 5 Lakhs/50 Lakhs = 10% PV 

2016- 10 lakhs/75Lakhs = 13.33 %

So 2016 profit is 3.3% is greater than 2015 profit

 


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