Solution-What should be the percentage increase in sales

What should be the percentage increase in sales

Assignment Help Cost Accounting

Reference no: EM133021768

Question - Management of ABC Ltd.is seeking your advice relating to two of its product X' and 'Y'. 'It sells its product 'X' at Rs.15 per unit. In a particular period when company produces and sells its 80,000 units, it incurs a loss of Rs.5 per unit. If the volume is raised to 2,00,000 units, it earns a profit of Rs.4 per unit. Calculate Break even points of this product both in terms of rupees as well as in terms of units.

For product 'Y' break-even sales level is at Rs.50,00,000. P/V ratio of the product is 20%. The company now wants to replace the old machinery being used in the production of product 'Y' with new one. This will result in an increase of its fixed cost by 25% though selling price and variable cost remains unchanged. What should be the percentage increase in sales for break-even if fixed cost goes up by 25%?

Reference no: EM133021768

Questions Cloud

How much money will you have in the account after one year : You put $1,000 into a savings account today that offers 5% APR with semi-annual compounding. How much money will you have in the account after one year

Engage diversity and difference in practice : Describe the waiting room/lobby and front office personnel, including observations about client and staff diversity and Analyze how the waiting room/lobby

What effect would this have on the profitability : Annual fixed manufacturing cost is JOD 72,000. What effect would this have on the profitability of the special order

Calculate the CLV : The acquisition cost of provisioning the service is Rs 2000 and revenue coming in is Rs 5000 in the 1st year, Calculate the CLV

What should be the percentage increase in sales : For product 'Y' break-even sales level is at Rs.50,00,000. P/V ratio of the product is 20%. What should be the percentage increase in sales

Draw the fringing of a magnetic field : Draw the fringing of a magnetic field between two poles and explain how it changes the effective area of the air-gap?

What is ks for a share of RITO stock : RITO stock is currently selling for $ 39.54 a share. If the company is expected to pay a dividend of $ 2.00 a year from now. What is ks for share of RITO stock

What was the total amount of cash collected : On December? 1, 2018, Restaurant? Equipment, Inc. sold machinery to a customer for? $23,000. What was the total amount of cash collected

Calculate the weighted average number of shares outstanding : On October 1, 2020, Crane Ltd. declared and issued a 10% stock dividend. Calculate the weighted average number of shares outstanding

User Account

All Pages

What should be the percentage increase in sales

Reference no: EM133021768

Reference no: EM133021768

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT