Q1. XYZ co ltd produced and sold 1,000 toys last year at a price of Rs 500 each.

The cost
structure per toy is as follows:

Material = Rs 100

Labour= Rs 50

Variable Overhead = Rs 25

Fixed Over head = Rs 200

Profit = Rs 125

Due to heavy competition, the price has to be reduced to Rs 425 for the coming year.
Assuming that there will be no changes in cost, find out how many toys shall be sold to
ensure the same amount of total profit as last year.
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Q2. A company annually manufactures and sells 20,000 units of a product. The selling price
of which is Rs 50 and profit earned is Rs 10 per Unit.

The analysis of cost of 20,000 Units is:

Material Cost Rs 3,00,000

Labour Cost Rs 1,00,000

Overheads Rs 4,00,000 (50% variable)

You are required to compute:

i. Break even Sales in Units and in Rupees

ii. Sales to earn Profit of Rs 3,00,000
iii. Profit when 15,000 units are sold
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Q3. Following information are given for the manufacturing of a product:

Fixed Expenses Rs 4,00,000

Materials Rs 10 per unit
Labour Rs 5 per Unit
Direct Expenses
Fuel Rs 3 per unit
Carriage Inward Rs 2 per unit
Selling Price Rs 40 per unit

Calculate Break-even point in terms of units. Also find out new B.E.P if selling is reduced by
10% per unit.