The total cost and profit of a manufacturing company for two years were as follows: Year Total cost (Rs.) Profit (Rs.) I 400,000 50,000 II 600,000…
BBS Cost and Management Accounting · 2081 · Solved Question with Answer
The total cost and profit of a manufacturing company for two years were as follows:
| Year | Total cost (Rs.) | Profit (Rs.) |
| I | 400,000 | 50,000 |
| II | 600,000 | 100,000 |
Required:
Break - even point in Rs.
Break - even point in units if selling price per unit is Rs. 100.
Sales to earn desired profit after tax of Rs. 30,000 if tax rate is 25%
Profit when sales are Rs. 800,000
Margin of safety if profit is Rs. 50,000