Sales Rs. 5,000,000 Less: Variable Cost 3,000,000 Contribution Margin 2,000,000 Less: Fixed Cost 1,600,000 Profit 400,000 Note: Selling Price for each unit = Rs. 4 Required: a. Break-Even Point (in amount) b. Break-Even Point (in units) c. Margin of Safety d. Margin of Safety (%) e. Margin of Safety (in units)
Sales Rs. 5,000,000 Less: Variable Cost 3,000,000 Contribution Margin 2,000,000 Less: Fixed Cost 1,600,000 Profit 400,000 Note: Selling Price for each unit = Rs. 4 Required: a. Break-Even Point (in amount) b. Break-Even Point (in units) c. Margin of Safety d. Margin of Safety (%) e. Margin of Safety (in units)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
|
Sales |
Rs. 5,000,000 |
|
Less: Variable Cost |
3,000,000 |
|
Contribution Margin |
2,000,000 |
|
Less: Fixed Cost |
1,600,000 |
|
Profit |
400,000 |
Note: Selling Price for each unit = Rs. 4
Required:
a. Break-Even Point (in amount)
b. Break-Even Point (in units)
c. Margin of Safety
d. Margin of Safety (%)
e. Margin of Safety (in units)
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