Calculate from the following data (i) value of the output at which the business breaks even, and (ii) the percentage of capacity at which it breaks even : Direct wages Direct materials Works expenses Administrative expenses Selling & distribution expenses Net sales [Ans. (i) 4,85,745 (ii) 57.83%] Budget for the year 2021 based on 100% capacity 2,09,964 2,44,552 1,81,820 30,000 61,188 8,40,000 Estimated shut down expenditure ₹ 93,528 20,508 40,188

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Do not give solution in image 

Ex. 5.
Calculate from the following data (i) value of the output at which the business breaks even,
and (ii) the percentage of capacity at which it breaks even :
Direct wages
Direct materials
Works expenses
Administrative expenses
Selling & distribution expenses
Net sales
[Ans. (i) 4,85,745 (ii) 57.83%]
2021
Budget for the year.
based on 100% capacity
2,09,964
2,44,552
1,81,820
30,000
61,188
8,40,000
Estimated shut
down expenditure
₹
93,528
20,508
40,188
Transcribed Image Text:Ex. 5. Calculate from the following data (i) value of the output at which the business breaks even, and (ii) the percentage of capacity at which it breaks even : Direct wages Direct materials Works expenses Administrative expenses Selling & distribution expenses Net sales [Ans. (i) 4,85,745 (ii) 57.83%] 2021 Budget for the year. based on 100% capacity 2,09,964 2,44,552 1,81,820 30,000 61,188 8,40,000 Estimated shut down expenditure ₹ 93,528 20,508 40,188
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education