Requir ed: a. Break-even point in amount b. Rate of Margin of Safety
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Q. No. 2
BREAK – EVEN ANALYSIS
ABC Manufacturing Corporation provides the following estimated data:
Fixed marketing expenses
Variable marketing expenses
Fixed administrative expenses
Variable administrative expenses
Sales
Rs. 950,000
Rs. 71,000
Direct materials
190,000
80,000
Direct Labor
160,000
9,500
Fixed FOH
171,000
4,000
Variable FOH
45,000
Required:
a. Break-even point in amount
b. Rate of Margin of Safety
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