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From the following find out
a. Profit Volume ratio
b. Break even point
c. Sales for 40% P/V Ratio
d. Margin of safety from the sales Rs 3,00,000
e. Net profit from the sales of Rs 3,00,000
f. Required sales for the new profit of Rs 70,000
g. Required sales for the net profit of Rs 70,,000 after
tax, the corporate income tax
being 40%
h. Additional sales required to convert an increase of Rs
3000 p.a. in the sales
manager salary
Sale 2,00,000
Variable Overheads 1,50,000
Profit 50000
Fixed overheads 15000
Net profit 35000
Sl
No
Heads of Account Debit
Rs
Credit
Rs
1 Drawing and Capital 750 15,000
2 Stock as on 01.01.2009 69720
3 Bills Receivable and
bills payable
1000 1180
4 Returns 300 320
5 Purchases and Sales 4500 8300
6 Wages 70
7 Discount 30
8 Salaries 200
9 Canara Bank Shares 3000
10 Insurance 120
11 Building 3000
12 Furniture 700
13 Debtors and Creditors 600 1300
14 Cash in Hand 470
15 Overdraft at bank 900
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selling price = shs. 200, variable overhead-selling per unit= shs 80, variable production cost per unit = shs 60, fixed selling cost = 2,840,000. the production capacity of the project is 200,000 units. required P/V ratio, BEP and margin of safety
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