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Answer Posted / sivakumar
Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period.
Formula = (sum of free-float Market Capital(30)benchmark stocks)*index factor
index factor=100/market captialvalue 2014_2015
where 100 is the index value during 2014-2015
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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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