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Calculate the break-even point in volume and value

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Reference no: EM133073984

Question - From the following information relating to Gowtham Ltd, you are required to find out

Sales price - R3. 20 per unit

Variable manufacturing cost - Rs. 11 per unit

Variable selling cost - Rs. 3 per unit

Fixed factory overheads - Rs. 5,40,000 per year

Fixed selling costs - Rs. 2,52,000 per year

Required -

(a) Calculate the Break-even point in volume and value.

(b) Calculate the Sales required to earn a profit of Rs. 60,000.

(c) Calculate Sales required to earn a profit of 10% of sales.

Reference no: EM133073984

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