Answer / sandeep kumar thakur

Herez the correct answers/solutions


1) P/V ratio

F.C (Fixed expenses/cost). = 4,000
B.E.P = 10,000

B.E.P =. F.C / P/V ratio × 100

10000 = 4000/pV ratio × 100

Pv ratio = 4000/10000 × 100

Pv ratio = 40% (solved)

2). Profit when sales are 20000

P/v ratio = F.c + profit / sales × 100

40 = 4000 + profit /20000 × 100

20000 × 40 = 4000+ profit × 100

8,00000/100 = 4000 + profit

8000 = 4000 + profit

Or, profit = 8000-4000 = 4000 (solved)


Now part 3 = New BEP if selling price reduced by 20%
{
For this one no one gave correct answer

Herez the trick

As we know , sales = F.c + V.C + profit(or - loss)

(F.c fixed cost , VC variable cost )

Therefore Selling price above was 20000 and profit was 4000 (solved in part 2 and FC was 4000)... Therefore

20000 = 4000 + V.c + 4000

I.e V.c = 12000 }

So now. We have

Fc = 4000
VC = 12000
SALES = 16000 (i.e 20% reduced as asked in part 3 )

Now new B.E.P = F.C / Sales - V.C ×. Sales

{ there r more than one formulaes to calculate BEP)

New B.E.P = 4000/16000- 12000× 16000

New B.E.P = 4000/ 4000 × 16000

New B.E.P = 1 × 16000

So when sales r 16000 B.E.P will be on 16000.

16000 is a point of no profit no loss.

Veridication :-

Sales =. FC + VC + profit (or - loss)

16000 = 4000 + 12000 + 0

16000 = 16000

Therefore its correct.

Answer / mohit duvedi

given:-
sales=20000
FC=4000
BEP=10000

BEP=FC/PV RATIO
:. PV RATIO= FC/BEP
PV RATIO= 4000/10000 *100
(1)PVR=40% ANS


DESIRED PROFIT= (SALES*PVR)-FC
DP= (20000*40%)-4000
DP=8000-4000=4000
(2) DESIRED PROFIT=4000


NEW SELLING PRICE=20000-20%=16000
NEW BEP= FC/N PVR

N PVR=FC+PROFIT/NEW SELLING PRICE*100
=4000+4000/16000*100
=8000/16000*100
=50%
NEW BEP=4000/50%
=8000
(3) NEW BREAK EVEN POINT=8000 ANS

Answer / h. vabeizawzi

PVR=SALES-VARIABLE COST/SALES*100
=20000-12000/20000*100
=8000/20000*100
=40%
OR
PVR=FC+PROFIT/SALES*100
=4000+4000/20000*100
=8000/20000*100
=40%
OR
PVR=CONTRIBUTION/SALES*100
=8000/20000*100=40%
+----------------------------------------------------------+

Answer / arvind rana (behdala) una,hp

GIVEN==> sales=20000, FC=4000, BEP=10000

ANSWER==>(1)PVR=40% (2)PROFIT=4000 (3)NEW BEP=8000

BEP=FC/PV RATIO
:. PV RATIO= FC/BEP
PV RATIO= 4000/10000 *100
(1)PVR=40% ANS

varification of ANS(1):-
PVR=SALES-VARIABLE COST/SALES*100
=20000-12000/20000*100
=8000/20000*100
=40%
OR
PVR=FC+PROFIT/SALES*100
=4000+4000/20000*100
=8000/20000*100
=40%
OR
PVR=CONTRIBUTION/SALES*100
=8000/20000*100=40%
+----------------------------------------------------------+
DESIRED PROFIT= (SALES*PVR)-FC
DP= (20000*40%)-4000
DP=8000-4000=4000
(2) DESIRED PROFIT=4000

VARIFICATION OF ANS(2):-
VC=(1-PVR)SALES =(1-40%)SALES=60%(20000)=12000

SALES=FC+VC+P
20000=4000+12000+P
P=20000-16000=4000
+----------------------------------------------------------+

NEW SELLING PRICE=20000-20%=16000
NEW BEP= FC/N PVR

N PVR=FC+PROFIT/NEW SELLING PRICE*100
=4000+4000/16000*100
=8000/16000*100
=50%
NEW BEP=4000/50%
=8000
(3) NEW BREAK EVEN POINT=8000 ANS

VARIFICATION OF ANS(3):-

BREAK EVEN POINT IS A SITUATION WHERE TOTAL COST=TOTAL
SALES AND CONTRIBUTION=FIXED COST
REDUCTION IN SALES ONLY EFFECTS ON VARIABLE COST.
SO:- %AGE CHANGE IN SALES(-20%) = CHANGE IN BEP
O
LD BEP=10000 (GIVEN)
NEW BEP=10000-(20%)10000-2000=8000.
+---------------------------------------------------------+

Answer / syed

P/V Ratio Contribution/Sales*100

Contribution Sales - Variable Cost

BEP = Fixed Cost/Contribution*Sales

10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000


Contribution 20000-8000
Contribution 12000

P/V Ratio 12000/20000*100
P/V Ratio 60


Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000


IF selling price reduced by 20%, New BEP

Sales 20000*20/100 16000

BEP 4000/12000*16000

5333.333333

I want to know the ANSWER IS CORRECT / NOT. If not please
produce the correct one

Thanks

syed.

Answer / sunita

P/V Ratio Contribution/Sales*100

Contribution Sales - Variable Cost

BEP = Fixed Cost/Contribution*Sales

10000 = 4000/Variable cost *20000
Variable cost 80000000/10000
Variable cost 8000


Contribution 20000-8000
Contribution 12000

P/V Ratio 12000/20000*100
P/V Ratio 60


Sales 20000
V.cost -8000
Contributin 12000
F.cost -4000
Profit 8000


IF selling price reduced by 20%, New BEP

Sales 20000*20/100 16000

BEP 4000/12000*16000

5333.333333

Answer / g.kasi, asst.director

Correct answers are :-
1)pvr=40% 2)profit=4000 3)new bep=8000
4)contribution=8000 5)variable cost=12000

Syed in his calculation, instead of putting contribution ,he used variable cost, hence he calculated variable cost as rs.8ooo, ( variable cost value and contribution value interchanged )
In answer 1 ) bep = f.C / contribution * sales
10000 = 4000 /8000 *20000
10000 = 10000
In answer 2 )new bep = f.C /c * new sales
8000 = 4000 / 8000 * 16000
8000 = 8000

Answer / harsh sharda chattara,una,hp

IS ANS GIVEN BY SYED AND SUNIT IS WRONG ?

ANSWERS ARE:-
1)PVR=60% 2)PROFIT=8000 3)NEW BEP=5333.33
4)CONTRIBUTON=12000 5)VARIABLE COST=8000


IN ANS 1)BEP =Fixed Cost/Contribution*Sales
? 10000=4000/12000*20000
? 10000=/=6666.66
BUT
IN ANS 3)BEP =Fixed Cost/Contribution*Sales
5333.33=4000/12000*16000
5333.33=5333.33

DO U HAVE ANY ANSWER OR REASION PLEASE TELL ME.............

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