20/6/20 Cost Volume Profit AnUnits 2,000 2,000

CM Approach Co. A Per Unit % Co. B Per Unit

Contribution Format Sales 1,000,000 500 100 1,000,000
Different Situations VE 400,000 200 40 600,000
Traditional Formats CM 600,000 300 60 400,000
Degree of operating l FC 200,000 300,000
Margin of safety Profit 400,000 100,000
Break-even point
Question: The manager says that there will be an incraease of 10
% in sales units, what will be the total profit?

Increased units * CM /unit

200 * 300 = 60,000 Total profit = Increased profit + old

Co. A

200 * 200 = 40,000 Co. B

Question: The manager says that there will be an incraease of 25

% in sales units, what will be the total profit? In case of CO. C

1,000 * 150 = 150,000

Question : If the sales amount is incresed by 15% , by how how the profit will increase by?

Increase amount of sales * CM raQuestion : If the sales amount is incresed by 15% , by how how the profit will
150,000 * 60% = Rs.90,000 300,000 * 30% = Rs.90,000

Question : If the sales amount is incresed by 5% , by how how the profit will increase by? Incase of CO.B

Class Timings: Thursday at 8pm onwards

 4,000
% Co. C Per Unit %
100 2,000,000 100
60 1,400,00 70
40 600,000 30
300,000
300,000

fit = Increased profit + old profit

60,000 + 400,000
460,000

40,000 + 100,000 = 140,000

150,000 + 450,000

y how how the profit will increase by? In case of CO.C