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"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?<br>Selling price - Rs 6 per unit<br>Variable production cost - Rs 1.20 per unit<br>Variable selling cost - Rs 0.40 per unit<br>Fixed production cost - Rs 4 per unit<br>Fixed selling cost - Rs 0.80 per unit<br>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
Correct Answer:
11,885 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
"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
"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
"BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is"
A
Rs. 60,532
B
Rs. 61,120
C
Rs. 66,532
D
Rs. 86,620
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 manufactures a single product for which cost and selling price data are as follows:
Selling price per unit - Rs 12
Variable cost per unit - Rs 8
Fixed cost for a period - Rs 98,000
Budgeted sales for a period - 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:
A
20%
B
25%
C
73%
D
125%
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
Raw material purchased:
1
st
January, 600 units @ Rs. 12 per unit
12
th
January, 500 units @ Rs. 14 per unit
21
st
January, 300 units @ Rs. 13 per unit
Raw material issued for manufacture:
3
rd
January 300 units
5
th
January 124 units
15
th
January 250 units
16
th
January 300 units
Raw material returned to stores from manufacturing department on 14
th
January, 50 units. The material is issued on First-in-First out method.
The value of material remaining in store on 21
st
January will be:
A
5,775
B
6,100
C
6,350
D
6,600
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
$$\frac{{\text{F}}}{{1 - \frac{{\text{V}}}{{\text{P}}}}}$$
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