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If the fixed cost is Rs. 40,000, variable cost per unit Rs. 2 and if the selling price per unit is Rs. 3. What will break even point (in-units)?
A
20,000 units
B
30,000 units
C
40,000 units
D
50,000 units
Correct Answer:
40,000 units
"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
A
8,788 units
B
11,600 units
C
11,885 units
D
12,397 units
"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
A
8,000 units
B
8,333 units
C
10,000 units
D
10,909 units
"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
A
2,500 units
B
9,833 units
C
10,625 units
D
13,409 units
"S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?"
A
10.1% decrease
B
11.2% decrease
C
13.3% decrease
D
16.0% decrease
Profit on selling 10 candles equals selling price of 3 bulbs. While loss on selling 10 bulbs equal selling price of 4 candles. Also profit percentage equals to the loss percentage and cost of a candle is half of the cost of a bulb. What is the ratio of selling price of candles to the selling price of a bulb?
A
5 : 4
B
3 : 2
C
4 : 5
D
3 : 4
If ‘F’ is the fixed cost, ‘V’ is the variable cost per unit (or total variable costs) and ‘P’ is the selling price of each unit (or total sales value), then break-even point is equal to
A
$$\frac{{{\text{F}} \times {\text{V}}}}{{\text{P}}}$$
B
$$\frac{{{\text{F}} \times {\text{P}}}}{{\text{V}}}$$
C
$$\frac{{\text{F}}}{{1 + \frac{{\text{V}}}{{\text{P}}}}}$$
D
$$\frac{{\text{F}}}{{1 - \frac{{\text{V}}}{{\text{P}}}}}$$
From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year.
Sales price: Rs. 25 per unit
Variable manufacturing costs: Rs. 12 per unit
Variable selling costs: Rs. 3 per unit
Fixed factory overheads: Rs. 5,00,000
Fixed selling costs: Rs. 3,00,000
A
60,000 units
B
88,000 units
C
98,000 units
D
1,00,000 units
A company's break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company's annual fixed costs?
A
Rs 120
B
Rs 2,40,000
C
Rs 3,00,000
D
Rs 5,40,000
A shopkeeper has 11 books of same cost price. He sells the first book at certain price, then he sells second book at a price which is Rs. 1 less than the selling price of first book and then he sells third book at a price which is Rs. 1, less than the selling price of second book. Following this pattern, he sold all 11 books. If he sells sixth book at its cost price. Find the over-all percent profit or loss on selling all 11 books = ?
A
20%
B
10%
C
$$\frac{1}{{11}}$$%
D
No profit no loss
Profits can be increased by
1. decreasing the selling price per unit.
2. increasing the selling price per unit.
3. decreasing the volume of sales.
4. increasing the volume of sales.
5. decreasing the fixed or variable expenses.
6. increasing the fixed or variable expenses.
7. giving more weightage for products having higher P/V ratio.
8. giving less weightage for products having higher P/V ratio.
Select the correct answer
A
1, 3, 5 and 7
B
2, 4, 6 and 8
C
2, 4, 5 and 7
D
1, 3, 6 and 8