Following figures relate to Rajkot Mills Ltd. For the year 2019: Fixed factory overhead        400,000 Fixed Selling and Distribution Overhead    200,000 Variable cost per unit    12 Selling price per unit    20 Calculate: Break-even point in units. Units to be sold to earn a target net income of Rs. 5000 per month during a year. Number of units to earn a net income of 25% on cost.  Selling price per unit if break-even point is to be brought down by 15,000 units.

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.