From the following data calculate (i) P/V Ratio (ii) Profit
when sales are Rs.20,000 and (iii) the new Break-Even
Point, if the selling price is reduced by 20%
Fixed expenses Rs. 4,000
Break-Even-Pont Rs. 10,000
- 8 Answers
- 84259 Views
- Apollo, MBA, Techno Labs, I also Faced
- E-Mail Answers
Answer Posted / 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.
| Is This Answer Correct ? | 90 Yes | 15 No |
Post New Answer View All Answers
what is undisclosed profit? explain
What is discounting accounting and why depriciation of assets are mention in dicounting accounting?
Short Answer on __________Accrued interest
How will be prepare invoice in tally, please tell me step by step
Define the word Profit in terms of business
can payorder be issued for outstation?if yes then how?should it be account payee?
why should we are preparing BRS
Who will be called as consignee
What are the major responsibility's of an accountant? what are the qualities he /she requires?
Hi frnds, can any one tell me how much funds has to be there to convince financially sound during the visa interview and what supporting documents has to be produced. What is backlogs means.....hope the best known will answer.
KINDLY PROVIDE ME RBI OFFICER SCALE B QUESTION PAPER (PREVIOUS)
Name some errors which can be detected by Trial Balance
what is crisil?what is the advantage of crisil rating?
honararium for the month of march 2013 can be paid on 31 mar 2013
Suppose My received Interest Income is 24934.59 And for the same time my Bank Charge total is 7785.19. Now the total Bank Charge will be deducted from Interest Income and the amount of (24934.59-7785.19)=17149.40 will be withdrawn to deposit in govt. Account.What will be the Journal Entry for 17149.40. Here, Already Bank Charge 7785.40 is Already Debited and 24934.59 is already credited in Journal.
