Requir ed: a. Break-even point in amount b. Rate of Margin of Safety

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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