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Question:
(a) For a business annual sales are Rs 50,000 and variable expenses are Rs 35,000 and fixed expenses are Rs 25,000. The owner wants to earn at least Rs 5,000 as profit, how much he will have to sell?
(b) A company is venturing into a new product line and it estimates that it would sell 15,000 units during a full year at a price of Rs 10 each. It also estimates that the total fixed cost as applicable to this product would be Rs 34,000 and variable cost of production per unit would be Rs 6. Now the question is at least how much to sell to avoid losses. The company also contemplates a decrease of 10 per cent in selling price because of fierce competition or an increase of 10 percent in its variable cost because of scarcity or an increase of Rs 6,000 in fixed costs because of extra establishment. The company would like to know the impact of these likely changes on its profits for this product.
underlying assumptions of breakeven analysis and the limitations of this.
Question 1 A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures, the
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full explaination with diagram
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discuss which of the cost classification is suitable for LunchBreak LTD and why?
M/s ABC has an existing sales of Rs.50 lakhs and permits a credit period of 30 days to its customers. The firm cost of capital is 10% and the ratio of variable cost to sales is 85
Selling product for 31.00 and Variable expenses are 26.00. In order to cover the fixed expenses 31,500 hats must be sold what is the Total fixed cost in dollars?
CVP ANALYSIS AND COMPUTER APPLICATIONS The output from a CVP model is only as good as the input. The analysis will include assumptions about sales mix, production efficiency, p
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