Mraginal cost statement

particulars existing increase next year

material/unit ₹ 120.00 7.50% ₹ 129.00
labour ₹ 30.00 10% ₹ 33.00
variable overhead ₹ 12.00 5% ₹ 12.60
total variable cost/unit ₹ 162.00 ₹ 174.60
existing selling price/unit ₹ 270.00
pv ratio 40.00%
if pv ratio is 40%, and sales is 100%, then variable cost ratio is 60%

new selling price ₹ 291.00

pv ratio 40
total revenue
pv ratio in amt
less: existing fixed cost
existing profit

new contribution margin with incresed fixed cost

desired profit 220,000.00
incresed fixed cost
new contribution margin
 income statement in contribution margin format for the fiscal years 2003,2004&2006
particulars 2003 2004 2006 2007
Sales(a) 8,583,000 8,102,000 10,711,000 10,711,000
less: variable cost
COGS 4,326,000 4,132,000 5,570,000
sales commission 429,000 405,000 536,000
total variable cost 4,755,000 4,537,000 6,106,000
contribution margin 3,828,000 3,565,000 4,605,000
less: fixed costs
salaries 2,021,000 2,181,000 3,215,000
advertising 254,000 250,000 257,000
admin exp 418,000 425,000 435,000
rent 420,000 420,000 840,000
depreciation 84,000 84,000 142,000
Misc.exp 53,000 93,000 122,000
TOTAL FIXED COST 3,250,000 3,353,000 5,011,000
NET INCOME 578,000 212,000 -406,000
No.of sales tickets 5,341 5,316 6,897
contrbution/unit 717 671 668
variable cost /unit 890 853 885
selling price per unit 1,607 1,524 1,553
p/v ratio 0 0 0
breakeven sales in sales tickets(units) 4,535 5,000 7,505
breakeven sales in amount (b) 7,287,030 7,620,198 11,655,336
roundup of BEP in units 4,535 5,000 7,506
average sales ticket price 1,607 1,524 1,553
margin of safety (a-b) 1,295,970 481,802 -944,336
% of MS 15.10% 5.95% -8.82%

AVERAGE SALES PRICE 1,397.69

total sales 10,482,709.87
less: total variable cost 6,639,843.41
total contribution 3,842,866.46
total fixed cost 5,011,000.00
loss -1,168,133.54

reduce selling price 1,397.69

less: variable cost/unit 885.31
contribution per unit 512.38
total fixed cost 5,011,000.00
BREAKEVEN SALES IN AMOUNT 13,669,186.71
BREAKEVEN SALES IN SALES TICKETS(UNITS) 9,779.81 9780 units

AVERAGE SALES PRICE 1,552.99

total sales 10,711,000.00
less: total variable cost 5,570,000.00
total contribution 5,141,000.00
total fixed cost 5,011,000.00
PROFIT/LOSS 130,000.00

selling price 1,552.99

less: variable cost/unit 807.6
contribution per unit 745.4
total fixed cost 5,011,000.00
BREAKEVEN SALES IN AMOUNT 10,440,151.92
BREAKEVEN SALES IN SALES TICKETS(UNITS) 6,722.60 6723 units

AVERAGE SALES PRICE 1,552.99

total sales 10,711,000.00
less: total variable cost 6,106,000.00
total contribution 4,605,000.00
total fixed cost 5,211,000.00
loss -606,000.00
selling price
less: variable cost/unit
contribution per unit
total fixed cost
BREAKEVEN SALES IN AMOUNT
BREAKEVEN SALES IN SALES TICKETS(UNITS)
ars 2003,2004&2006