Income Statement of a MM Co mpany is as follows: Production and Sales Units: 12,000 Sales Revenue @ Rs.200 Rs.240,000 Less: Variable Cost @ Rs.100…
BBS Cost and Management Accounting · 2079 · Solved Question with Answer
Income Statement of a MM Company is as follows:
| Production and Sales Units: | 12,000 |
| Sales Revenue @ Rs.200 | Rs.240,000 |
| Less: Variable Cost @ Rs.100 | Rs.120,000 |
| Contribution Margin | Rs.120,000 |
| Less: Fixed Cost | Rs.80,000 |
| Net Income before Tax | Rs.40,000 |
Required:
a. BEP in Units and Rs.
b. Sales units to earn Rs. 80,000
c. Sales in Rs. if after tax profit is Rs. 45,000 and tax rate is 25%
d. Margin of Safety if profit is Rs. 50,000
e. Profit if Sales is Rs. 300,000
f. New BEP in units and Rs. if SPPU is increased by Rs. 20, VCPU is increased to Rs. 110 and Fixed Cost is increased to Rs. 110,000