The sales revenue and profit of a manufacturing company for two years were as follows : Year Sale Revenue (Rs) Profit (Rs) 2077 200,000 8,000 2088…
BBS Cost and Management Accounting · 2078 · Solved Question with Answer
The sales revenue and profit of a manufacturing company for two years were as follows :
| Year | Sale Revenue (Rs) | Profit (Rs) |
| 2077 | 200,000 | 8,000 |
| 2088 | 300,000 | 28,000 |
Required: i) Profit volume ratio ii) Fixed cost iii) Brake-even point in Rs. iv) Break-even point in units if selling price per unit is Rs.10 iv) Sales to earn desired profit after tax of Rs.20,000 if tax rate is 25% v) Profit when sales are Rs.500,000 vi) Margin of safety if profit is Rs.25,000