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A manufacturing company record has the following trading results for two periods. Particulars (Rs.) Sales in units 40,000 Selling price per unit 30…

2024 · Solved Question with Answer

A manufacturing company record has the following trading results for two periods.

Particulars(Rs.)
Sales in units40,000
Selling price per unit30
Variable cost per unit20
Operating ProfitRs 100,000

Required:

a. Contribution margin per unit and contribution margin ratio

b. Fixed cost

c. Break-even point in units and Rs.

d. Margin of safety ratio

e. Sales in Rs. to earn a desired profit after tax of Rs 120,000 of the tax rate is 40%.

f. Required sales in Rs. if desired Profit Rs 200,000.

g. How many units must be sold to earn profit 10% on sales?

Solution

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