execise 1 Selling Price 25 C 13

Variable Cost 12
Fixed Cost 65000 BEP = F/C per unit
5000
Find BEP

CSR 52% BES = F/CS 125000

Find Sales to earn a profit of
35000 Sales to earn target profit = (F+P)/

Find Sales in case of 192308

35000 Sales in case of loss = (F-L)/CSR

57692.3

execise 2 Selling Price 20

Variable Cost 12
Fixed Cost 40000
Find Sales to earn a profit of
20000

execise 3 Selling Price 20

Variable Cost 12
Fixed Cost 40000
 Find profit if sales 300000

execise4 Selling Price 20

Variable Cost 12
Fixed Cost 40000
FC increases by 20%
What will happen t o BEP

execise 5 Selling Price 20

Variable Cost 12
Fixed Cost 40000

increase in SP by 20% -20%

execise 6' Selling Price 20

Variable Cost 12
Fixed Cost 40000

increase in Vc by 20%

April May
Exercise 7 Sales 100000 180000 80000
Profit -20000 20000 40000
Contribution 50000 90000

F 70000 70000
BES = F/CSR 140000
CSR 50%

CSR = Change in Profit/Change in Sales

with the following assumptions
No change in SP
No change VC per unit
No change FC
 Income Statement
Sales 125000
VC 60000

C 65000

F 65000
P 0

target profit = (F+P)/CSR

of loss = (F-L)/CSR
VC 5 units Vc FC TC Sales Profit
FC 30000
SO 20
Profit under TC and MC Cost Sheet (TC)
Production = 10000 units 10,000 DM 50,000
Direct Material = 5 per unit 5 DL 100,000
Direct Labour: 10 per unit 10 DE 50,000
Direct Expenses = 5 per unit 5 PC 200,000
M Overheads = 150,000 150,000 Add
Fixed: 60% 1 MO 150,000

Variable: 40% 0 COP 350,000 10,000 35

Sales (units) 8,000 Add
Price 80 Opening Stock 0
2,000 Les Closinjg Stock 70,000 2,000
COGS 280,000
Sales 640,000
Profit 360,000

Profit under TC and MC

Production = 10000 units 10,000
Direct Material = 5 per unit 5
Direct Labour: 10 per unit 10
Direct Expenses = 5 per unit
M Overheads = 150,000 150,000
Fixed: 60% 1
Variable: 40% 0
Sales (units) 10,000
Price 80
0
 Cost Sheet (MC)
DM 50,000
DL 100,000
DE 50,000
200,000
Add
VMO 60,000

VCOP 260,000 10,000 26

Add
Opening 0
less Clsing 52,000 2,000
VCOGS 208,000
Sales 640,000
CONT 432,000
F 90,000
Profit 342,000