1.PepsiCompanyproducesasinglearticle.

Followingcostdataisgivenaboutitsproduct:‐
SellingpriceperunitRs.40MarginalcostperunitRs.24FixedcostperannumRs.16000Calculate:(a)P/V
ratio(b)breakevensales(c)salestoearnaprofitofRs.2,000(d)ProfitatsalesofRs.60,000(e)Newbreakev
ensales,ifpriceisreducedby10%.

2.
BansicompanymanufacturesasingleproducthavingamarginalcostofRs.1.50perunit.FixedcostisRs.3
0,000perannum.Themarketissuchthatupto40,000unitscanbesoldatapriceofRs.3.00perunit,butanya
dditionalsalemustbemadeatRs.2.00perunit.CompanyhasaplannedprofitofRs.50,000.Howmanyunit
smustbemadeandsold?

3.Calculate the effect of change in “Sales mix” from the following data

Product Product Product Product TOTAL

M N O P
Sales 40000 50000 20000 10000 120000
Variable Cost 24000 34000 16000 4000 78000
Fixed Cost 29400
The sales mix changed to

M-Rs.30000

N-44000

O-Rs.40000

P-Rs.6000

Total –Rs.120000

4.Plant A produces a product which costs Rs.3 per unit when purchased in quantities of 10000
units and Rs.2.50 per unit when produced in quantities of 20000 units. Find out fixed cost.

5.You are given the following information relating to the production and sale of X Ltd, for the
year 2018 and 2019.
 2018 2019

Sales 76000 130000

Profit ….. 6000

Loss 4800 ……

Calculate

1. BEP Sale volume

2. Profit when sales are Rs.120000
3. Loss when sales go down to the level of Rs.60000
4. Sales required to earn a Profit of Rs.10000
5. Margin of safety in 2019

6.Management accounting provides immense help to the managerial personnel to take various
decisions “- Elucidate

7.What are the features of performance budgeting ?

8.What is TQM ? What are its features ?

9.X Ltd is considering the purchase of a new machine. The alternatives available for investments
in machines are A and B, each costing Rs. 75000 and cash inflows are given below

Year Machine A Machine B

1 30000 40000
2 30000 30000
3 20000 20000
4 10000 10000
5 5000 10000
The firm has expected return on capital of 10%. Risk premium rates are 2% and 7% respectively,
for investments A and B. Which investment should be preferred ?

10.The standard material required to manufacture one unit of product A is 5 Kg. and the standard
price per Kg. of material is Rs.3. The cost accounting records, however, reveals that 16000 Kgs
of material costing Rs.52000 were used for producing 3000 units of Product A. Calculate
variances.