KPR manufactures is planning to introduce energy flavored milk from 1 July 2019. In this respect, following projections have been made: C-PLUS Planned production (No. of packets) 42,000 Sales (No. of packets) 42,000 Production cost per packet: (Rupees) Direct material 100 Direct labor 15 Variable overheads 23 Fixed overheads 1,500,000 Selling and distribution cost per packet: Variable overheads 12 Fixed overheads 500,000 current profit 100,000 Required Compute break-even sales and margin of safety in units (budgeted units 41,000) Calculate the number of units to be sold to maintain the current profit if the sales price remains at Rs. 100 and the variable overhead is Rs 33.
KPR manufactures is planning to introduce energy flavored milk from 1 July 2019. In this respect, following projections have been made: C-PLUS Planned production (No. of packets) 42,000 Sales (No. of packets) 42,000 Production cost per packet: (Rupees) Direct material 100 Direct labor 15 Variable overheads 23 Fixed overheads 1,500,000 Selling and distribution cost per packet: Variable overheads 12 Fixed overheads 500,000 current profit 100,000 Required Compute break-even sales and margin of safety in units (budgeted units 41,000) Calculate the number of units to be sold to maintain the current profit if the sales price remains at Rs. 100 and the variable overhead is Rs 33.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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KPR manufactures is planning to introduce energy flavored milk from 1 July 2019. In this respect, following projections have been made:
C-PLUS
Planned production (No. of packets)
42,000
Sales (No. of packets)
42,000
Production cost per packet:
(Rupees)
Direct material
100
Direct labor
15
Variable
23
Fixed overheads
1,500,000
Selling and distribution cost per packet:
Variable overheads
12
Fixed overheads
500,000
current profit
100,000
Required
Compute break-even sales and margin of safety in units (budgeted units 41,000)
Calculate the number of units to be sold to maintain the current profit if the sales price remains at Rs. 100 and the variable overhead is Rs 33.
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