Calculate:
a) P/V Ratio
b) Fixed expenses.
c) The Break Even level of sales
d) Sales required to earn a profit of Rs 90 Lakhs
e) Profit or loss that would arise if the sales were Rs 300 Lakhs.
Q- The following information is available from the records of Jindal Steels as on 31 March 2003 and 2004.
2003 2004
Sales 2,50,000 4,00,000
Profit 45000 90000
Calculate:
(i) P/V Ratio=
(ii) Fixed Expenses=
(iii) The Break Even Level of Sales.
PRODUCT
X Y Z
Budgeted sales in units 10,000 15,000 20,000
Budgeted selling price per unit 4 4 4
Budgeted variable cost per unit 2.5 3 3.5
Budgeted fixed expenses total 12,000 9,000 7,500
From the information, you are required to compute the following for each component:
Q- A company has earned a contribution of Rs. 4,00,000 and net profit of Rs. 3,00,000 on sales of Rs.
16,00,000. What is the margin of safety?
Q-The break even point is 10,000 units, sales are 12,000 units. The margin of safety expressed as a
percentage of the break-even point is therefore:
Q-Contribution per unit is £1. Fixed costs are £5,000. Production and sales are 7,500 units.
Contribution margin is
Q-Contribution per unit is £1. Fixed costs are £5,000. Production and sales are 7,500 units. Profit is
Q- Variable cost is £4 per unit, Fixed cots are £80,000, Selling price per unit is £9, Sales are 5,000 units.
The target profit is £100,000. What must the sales revenue be?