Urgent!!!! indiffernce point -costing

Ashi. (student & Service ) (49 Points)

08 May 2016

Somebody please help how to calculate indfference point in case of three alternatives

if three alternatives avlble like VC Rs3 ,4,6 and fixed cost be Rs Rs 15000. 10000 and 5000

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6 Replies

Priyanshu (CA) (43 Points)
Replied 08 May 2016

change in fixed cost/ changein variable cost

indifference point is always calculated for two options

Priyanshu (CA) (43 Points)
Replied 08 May 2016

for 1 and 2 15000-10000/4-3 will come 5000 units

Priyanshu (CA) (43 Points)
Replied 08 May 2016

like wise calculate for 2 and 3 , 1 and three

venkatesa prabhu (Chartered Accountant) (58 Points)
Replied 08 May 2016

Just compute for alternatives like a to b b to c and a to c. Put all the figures in one line. Compare what is best for each quantity

shivam agarwal (ca student) (175 Points)
Replied 09 May 2016

Compute for alternatives like a to b b to c and a to c

Compare what is best

You can refer question 11 of practice manual of icai on page no. 2.36

Rishabh Jain (2 Points)
Replied 18 November 2019

thank you very much, had the same doubt! :)

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