1) Given fixed cost = ₹ 1,00,000, variable cost/unit = ₹ 30 and Selling price/unit = ₹ 40.

Calculate

i. BEP units
ii. SP per unit if BEP is brought down to 8000 units.

2) Compute BEP if sales = ₹ 1,00,000, total variable cost = ₹ 60,000 and TFC= ₹ 30,000.

3) Calculate the BEP and the sales value at this point from the following data.

Direct material cost = ₹ 8/ unit

Direct labour cost = ₹ 5/ unit

Fixed overhead = ₹ 24,000

Variable overhead = 60% on direct labour

Selling price = ₹25/unit

Trade discount = 4%

If the sales are 20% above the BEP, determine the net profit.

4) The table below shows the transaction details of a manufacturing unit

Particulars VC (% of the budgeted sales) FC (in Rs)

Direct material 23.8 -
Direct labour 18.4 -
Factory overhead 21.6 75,960
Distribution expenses 4.1 23360
Administrative & 11.1 26,680
miscellaneous expenses

The budgeted sales are ₹ 7,40,000.

i. What is the sales required in reaching the BEP?

ii. What is the profit at budgeted sales value?

5) A manufacturer produces 1500 units of product annually. The VC and SP is₹ 960 and ₹ 1200/unit
respectively. FC incurred by the manufacturer is ₹48,000 annually.

i. What is the BEP, Sales volume and value?

ii. What is the annual profit earned by manufacturer?

6) A and B can either make a part at home or buy it from supplier. They needs 70,000 of this part
each year. Consider the following data.

Source Fixed cost (FC) Unit variable cost (VC)

Make ₹ 10,125 ₹12.50
Buy 0 ₹14.75

Should A and B make or buy the part?

7) A manufacturer of product X buys a component at ₹8. In case he makes it by himself, the fixed
and variable cost would be ₹ 10,000 and ₹ 3 per component respectively. Should the manufacturer
make or buy the component.

8) If the FC of company is ₹ 60,000. VC and SP per unit is ₹ 10 and ₹ 20 respectively.

Find the BEP. If the company sells 10,000 units of the product, Find the margin of the safety of the
company in terms of units and sales value.

9) The following data relates to ABC enterprise for the month of December 2020:

Sales (3500 units) at ₹ 20 per unit = ₹ 70,000

Contribution margin per unit = ₹ 12

Total fixed expenses for month = ₹ 15,000.

Calculate the margin of safety in terms of units.

10) The BEP ₹ 65,000 for the first quarter of 2021. If the margin of safety is ₹ 45,000. Calculate the
actual sales for the first quarter.

11)Find BEP from the following data.

Actual sales = Rs 75000 , margin of safety= Rs 15000.

12) The company produces cardboard boxes, you can either get equipment and makes the boxes in
factory or order the boxes from manufacturers. The cost involved is as follows

i. To Make cardboard boxes FC = ₹ 5,50,000, VC = ₹ 50/box

ii. To Buy Cardboard FC = ₹ 0 , VC = ₹ 90/ box

At what quantity should the company shift its decision from buying to making.

13.The following information is obtained from A Ltd :

Sales ₹ 100000, variable cost ₹ 60000, fixed cost ₹ 30000

find: P/V Ratio & BEP

calculate the effect of :1. 20% increase in selling price

2. 10% decrease in selling price

14.Given the following information:

units of output 500000

Fixed cost ₹ 750000

variable cost per unit ₹ 2

selling price per unit ₹ 5

you are asked to find out:

1.BEP

2.sales needed for a profit of ₹ 600000

3.profit if 400000 units are sold at ₹ 6per unit.

15.A manufacturer produces 1500 units of products annually. The variable cost & selling price are

₹ 960 ₹ 1200 respectively. Fixed cost ₹ 48000.

1.what is BEP sales volume & value.

2.what is the annual profit earned by the manufacturer?

16. selling price per unit ₹ 10, variable cost ₹ 06.

BEP volume 10000 units.

Estimate the profit the firm could expect @ MOS of 5% actual sales?

17.A Company has a P/V of 40%.By what percentage must sales be increased to offset 10% reduction
in selling price?

18. a. A Co has fixed expenses of ₹ 90000 with sales at ₹ 300000 & a profit of ₹ 60000.

calculate the P/V Ratio .

If in the next period , the Co suffered a loss of ₹ 30000 ,Calculate the sales volume .

b. What is the MOS when profit is ₹ 60000.