Income Statement of a Manufacturing Company is as follows: Production and Sales Units: 30,000 Sales Revenue @ Rs 30 per unit Rs 900,000 Less:…
2024 · Solved Question with Answer
Income Statement of a Manufacturing Company is as follows:
Production and Sales Units: 30,000
Sales Revenue @ Rs 30 per unit Rs 900,000
Less: Variable Cost @ Rs 18 per unit Rs 540,000
Contribution Margin Rs 360,000
Less: Fixed Cost Rs 240,000
Net Income before Tax Rs 120,000
Required: i) Brake-even point in Rs
ii) Break-even point in units
iii) Sales to earn desired profit after tax of Rs 75,000 if tax rate is 25%
iv) Profit when sales are Rs 1,000,000
v) Margin of safety if profit is Rs 150,000
vi) Margin of safety ratio if actual sales is Rs 750,000
vii) Break even ratio if actual sales is Rs 800,000
