execise 1 Selling Price 25 C 13

Variable Cost 12
Fixed Cost 65000 BEP = F/C 5000

FIND Break Even Point If u sell 5000 the fixed costs are recovered

CSR 52% Means ? If I sell Rs 100 worth Fixed Cost is 52 and 48

Effect - F remaining constant Profit will go up, if I increase
How ? Increase SP or decrease VC

BES = F/CS 125000

Find Sales to earn a profit of Rs 35000 F+P / CSR
35000 192307.6923

Find Sales for a loss of 35000 (F-L)/CSR

execise 2 Selling Price 20

Variable Cost 12
Fixed Cost 40000
Find Sales to earn a profit of
20000

execise 3 Selling Price 20

Variable Cost 12
Fixed Cost 40000
Find profit if sales 300000
execise4 Selling Price 20
Variable Cost 12
Fixed Cost 40000
FC increases by 20%
What will happen t o BEP

execise 5 Selling Price 20

Variable Cost 12
Fixed Cost 40000

increase in SP by 20% -20%

execise 6' Selling Price 20

Variable Cost 12
Fixed Cost 40000

increase in Vc by 20%

April May
Exercise 7 Sales 100000 180000
Profit -20000 20000
 Verify
Income Statement
Sales 125000
VC 60000
C 65000
F 65000
xed costs are recovered P 0

rth Fixed Cost is 52 and 48 is Variable Cost

ofit will go up, if I increase CSR
ncrease SP or decrease VC
VC 5 units Vc FC TC Sales Profit
FC 30000
SO 20
Profit under TC and MC Cost Sheet
Production = 10000 units 10000 DM 50,000.00
Direct Material = 5 per unit 5 DL 100,000.00
Direct Labour: 10 per unit 10 DE 50,000.00
Direct Expenses = 5 per unit PC 200,000.00
M Overheads = 150,000 150000 Add
Fixed: 60% 0.6 MO 150,000.00
Variable: 40% 0.4 COP 350,000.00
Sales (units) 8000 Add
Price 80 Opening Stock -
2000 Less Closing Stock 70,000.00
COGS 280,000.00
Sales 640,000.00
Profit 360,000.00

Why is profit under marginal costing lower?

Profit under TC and MC

Production = 10000 units 10000
Direct Material = 5 per unit 5
Direct Labour: 10 per unit 10
Direct Expenses = 5 per unit
M Overheads = 150,000 150000
Fixed: 60% 60%
Variable: 40% 40%
Sales (units) 10000
Price 80
0
 Cost Sheet
DM 50,000.00
DL 100,000.00
DE 50,000.00
200,000.00
Add
VMO 60,000.00
10,000.00 35 VCOP 260,000.00 10,000.00 26
Add
Opening
2,000.00 Less Closing 52,000.00 2,000.00
VCOGS 208,000.00
Sales 640,000.00
CONT 432,000.00
F 90,000.00
Profit 342,000.00