I the selling price and variable cost increase by 20 and

Assignment Help Accounting Basics

Reference no: EM13615284

Unilever Pakistan sells one product for which data is givenbelow:

Particulars Rs

Selling price per unit 10

variable cost per unit 6

Fixedcost per unit 2

Thefixed costs are based on a budgeted level of activity of 5,000units for the period.

Readthe above case study carefully and write down the correctoption number (e-g A, B, C, D) in the given Excelfile

1.What is Unilever breakeven point in Rs of salesrevenue?

A.Rs.25, 00

B.Rs.25,000

C.Rs.5,000

D.Rs.50,000

2.What is Unilever breakeven point in units of salesrevenue?

A.25,000 units

B.25,00 units

C.50,000 units

D.5,000 units

3.How many units must be sold if unilever wish to earn a profit ofRs.6,000 for the period?

A.2,000 units

B.4,000 units

C.6,000 units

D.8,000 units

4.What is unilever margin of safety for the budget period if fixedcosts prove to be 20% higher than budgeted?

A.60%

B.40%

C.33x1/3%

D.20%

5.If the selling price and variable cost increase by 20% and 12%respectively by how much must sales volume change compared with the original budgeted level inorder to achieve the original budgeted profit for the period?

A.24.0% increase

B.24.2% decrease

C.37.9% decrease

D.37.9% increase

Reference no: EM13615284

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