Thursday, January 21, 2016

Numerical Problems on CVP Analysis

1. MBA ltd has supplied with the following information:


Total Fixed Costs 18,000

Total Variable Costs 30,000

Total Sales 60,000

Units Sold 20,000

Find

a. Contribution per unit  b. B.E.P. c. M.O.S. d. Profit e. Volume of Sales to earn profit of Rs.24000.

  

2. Calculate MOS.

Given


Particulars

A

B

Sales

1,00,000

1,00,000

Total Cost

80,000

80,000

Variable Cost

30,000

50,000

Fixed Cost

50,000

30,000


3. Given:-
Variable Cost per Unit = R. 75,
 Selling Price per unit is Rs. 100,
 Fixed cost = Rs. 2, 70,000.
If the BEP is to be brought down to 9000 units, what will be selling price per unit?

4. Given


Particulars

A

B

Sales

1,50,000

1,50,000

Variable Cost

1,20,000

1,00,000

Fixed Cost

15,000

35,000

Profit

15,000

15,000


You are required to:

  • Calculate the break-even point for each business
  • Calculate the sales volume at which each business will earn Rs.5,000 Profit.
  • State which business is likely to earn greater profit in conditions of:

  1. Heavy demand for the product
  2. Low demand for the product, and, briefly give your argument also.