Break Even Analysis, Cost Accounting

A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows:

Sales price per unit Rs.2000

Total variable production cost per unit Rs1100
Sales commission (on sales) 5%
Fixed costs and expenses:
Manufacturing overhead Rs 27,99,36,000
General and administrative Rs 18,66,24,000
Effective income tax rate 40%

How many units must the company sell in the coming year in order to reach its breakeven point? Show all workings. Recalculate the breakeven point for Sales price per unit Rs 2750 and Variable Cost per unit Rs 1350. Tax and Sales Commission rates remain unchanged

Posted Date: 6/28/2012 10:25:48 AM | Location : United States

Related Discussions:- Break Even Analysis, Assignment Help, Ask Question on Break Even Analysis, Get Answer, Expert's Help, Break Even Analysis Discussions

Write discussion on Break Even Analysis
Your posts are moderated
Related Questions
I would like to know the solution on this one.

This can be explained as the process of accumulating, calculating, analyzing, interpreting and reporting cost information that is both helpful and relevant to the internal and exte

Accounting for Job Order Costing - Direct Materials Direct materials (i) Dr Stores ledger control Account Cr Cash Account - for cash purchasers              X (ii) D

Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art

with relevant illustrations and examples, discuss the different overhead costing and control method.

A Government issued a number of index-linked bonds on 1 June 2000 which were redeemed on 1 June 2002.  Each bond had a nominal coupon rate of 3% per annum, payable half yearly in a

Labor Transactions (i) Wages Paid in cash (ii) Wages incurred like a) Direct labor or else b) Indirect labor  In the Financial Books  In

a.         What are the major equity and/or debt securities investments? What amounts are reported in the balance sheet? How significant are those amounts to the company's overall

Comparison between Absorption and Marginal Costing Marginal Costing like a cost accounting system is considerably different from absorption costing. It is an optionally metho

Activity Based Costing or ABC Absorption costing shows to be relatively straightforward way of adding overhead costs to units of production utilizing, more often than not, a v