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502d1assignment 4 & 5

The document contains 5 individual assignments involving calculation of various cost and profitability metrics like P/V ratio, BEP, margin of safety, contribution, etc. from given cost and sales information. The assignments involve companies from different industries and require preparing flexible budgets at various production levels showing fixed, variable and total costs.

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Geetanshi Agarwal
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43 views2 pages

502d1assignment 4 & 5

The document contains 5 individual assignments involving calculation of various cost and profitability metrics like P/V ratio, BEP, margin of safety, contribution, etc. from given cost and sales information. The assignments involve companies from different industries and require preparing flexible budgets at various production levels showing fixed, variable and total costs.

Uploaded by

Geetanshi Agarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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INDIVIDUAL ASSIGNMENT MODULE 4 AND 5 1.

The sales turnover and profit during two years were as follows: Year Sales Profit 2010 1,60,000 17,000 2011 1,80,000 20,000 Calculate: i. P/V ratio ii. BEP iii. Sales required to earn a profit of Rs. 45,000 iv. Fixed Expenses v. Variable cost for both the years 2. The records of a company show the following: Period Sales Profit I 1,25,000 8,000 II 1,40,000 12,000 Find out (a) P/V ratio (b) BEP (c) Fixed Cost (d) Profit when sales are Rs. 1,50,000 (e) Sales required to earn a profit of Rs. 24,000 (f) margin of safety for both the periods (g) Variable cost for both the periods. 3. From the following information, calculate (i) BEP in units and Rs. (ii) Margin of safety in units (iii) Number of cycles to be manufactured and sold to earn the same amount of profit, if selling price is reduced by Rs. 10 per unit (iv) P/V ratio if selling price is reduced by Rs. 2 per unit (v) Sales required to earn a profit of Rs. 600,000 (i) Materials Rs. 32 per unit (ii) Wages Rs.20 per unit (iii) Variable expenses Rs. 40 per unit (iv) Direct expenses Rs. 8 per unit (v) Fixed cost Rs. Rs. 300,000 (vi) Selling price per unit Rs. 160 (vii) Total units manufactured and sold = 12000 4. The following information relates to X Co. Ltd.: Sales Rs. 500,000 Variable costs Rs. 375,000 Fixed costs Rs. 37,500 Calculate: (i) P/V ratio (ii) BEP (iii) Margin of Safety (iv) Net profit from sales of Rs. 700,000 (v) Contribution when Sales = Rs. 400,000 (vi) Margin of Safety when Sales are Rs. 600,000 (vii) Required sales to earn a profit of Rs. 100,000 (viii) Profit when MoS is Rs. 400,000 (ix) From the following data prepare a flexible budget for production of 40000, 60000 and 75000 units of product X, distinctly showing variable and fixed cost as well as total cost.

5. Budgeted output: 100,000 units. Budgeted cost per unit given below: Expenses Per unit cost Direct material 90 Direct labour 45 Direct variable expenses 10 Manufacturing variable overheads 40 Fixed production overhead 5 Administration overhead (fixed) 5 Selling overhead 10 ( 10% fixed) Distribution overheads 15 ( 20% fixed) 6. ABC Ltd. produces 10,000 units at 100 % capacity utilization & its cost structure is as follows: Fixed costs Rs. 50000 Variable costs Rs. 3 per unit Semi-Variable Costs Rs. 4 per unit (40% variable) Prepare a flexible budget at 80%, 90% & 100 % level.

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