ra W 19. Given fixed cost are 27,000, profit 5,000 and Sales 250,000. Find P/V ratio «f0 7 PROBLEMS ON CVP AN. sale 0; Fived Cost & 30,00 1. From the folowing information, find out variable cost: Sale €1,00,000; Fie Cost ION M, : HAVIOUR AND DECI! ALYSIS - COST BEHA\ Profit ® 14,000 Séeee 90,000; Wages % 75,000; Direct Expenses 2. SMAtd,, gives you the following data: Sales ¥3,00,000;Direct Material £90,000; Direct Wag °5,000, Profit @ 20% on sales, Calculate Fixed Cost. Faooe 2130/0008, er , ‘and Profit. 6,08 3, From the following data, prepare a statement sori eal ane and Prot, 1,96 x t ' Sales 300,000 200000 | Direct Material 0,000 000 Direct Wages: 60,000 40, 2 x Variable Expenses 20,000 10,000 He Wy) 4 a Fired Expenses (Total) U,20,000 E owe "OS 4 From the data given below, find out ) eee i) Corben) POM, 406° vaio Rafathulla Bal g Sales 1,20,000 Direct Materials 45,000 Direct Wages 77,000 f Factory Overhead Fixed 15,000 Variable 4500 General Overhead Fixed 9,000 Variable 1,500 5. XY Co, Ltd. supplies you the how much the val fixedtbst is 28,000 ‘each dd =e to brgak-even ljsales to. fit of 26, NS peat Yi eae et Ua € 60, rect materials is €80,000; Direct Labour is *50,000% Variable 10. What is the amount of, F ‘ved costs when sales is 82,40,00 ‘overtiead are %20,000 a nd Profit s €50,0007 4. Aqaeo 41 Galelate the Breakceven point from the folowing pariart Fed ‘enses 3,00,000; Varble costs per unt 16; Sling Pree perunt x21 6g 900 cans yang " 22, From the folowing information find out the amount of prof eed during the year using marginal costing technique: Fired ‘cost £5,00,000, Variable cost #10 per Unit, Selling price 15 per unt, Output level 1,50,000 units. A-d,50,000 "30,000 07 the following particulars - Sales €2,00,000, Variable Costs %40,000, Prot 830,000 ar) Contiguon i) Pr ao, Vaabe cost per unit %40, Selig price per unit 80, Fixed price er unit €2,00,000, Output 1,000 (units) 4-40 soz, P-1,00, 000, 45. Calculate Break Even Point from the fol , 000 arabe Expenses ¥1,00,000 16, From the folowing data calculate 1) BEP expressed iP resin of sales in rupees i) No. of units that must be sold to earn a Profit of ‘omy x yale Manufacturing cost €11 per unt, Variable Seling cost 3 per unit Fixed Facto i i f Selling cost. 2,52, 000 per year. 17. Calculate Marginot safety f fala Sales €4,00,000, Fixed Costs 830,000, Variable Costs %50,000 4-4+0,00.0 " once ere lage my dagen ee CS {20.0N, Vale Cats 50,00 18. From the following particulars, Calculate /v ratio, break even sales and ‘Costs, Profit ¥2,000 represents 10% of sales. Margin of safety is 210,000, -20. Calculate Break Even Point from the following figures. Sales - %3,00,000, Fixed Expenses - %75,000, Direct 14 41,00,000, Direct Labour - 60,000, Direct Expenses - %40,000 Bd ove 21. Calculate BEP when variable cost pg units 2, total fixed costs are %40,000 and sling price per unit is %3,. 1) 2% 22. From the following at, find out BEF and cling pric’per unit ifthe BEP is brought dow to 2,000 units. Freed Experces:# 20,000; Selling price per unit: 825; Variable cost per unit €20. 7 Yyof 50,600 23, When sales are %1,00,000, total costs & 80,000, fixed costs €20,000 and the net profit *20,000,calculate the P/Y ratio, BEP anc MOS. $4000 24. You are requited to calculate BEP from the following information. Fixed cost €80,000; Variable cost per unit 1 14; Estimated sales €2,00,000;Selling price per unit 220 4. ,00,000; Soon Unto t 25. Find out the (a) BEP, and (b) Profit from sales of %40,000 when selling price Is &5 marginal cost is €3 and fixed expenses are €10,000. aoe ; Chcewlate Uf, 26. Sale of product amounts to 200 units per ,month at 10 per unit, Fixed cost is €100 a ‘variable ee on y De selling price is reduced to $9 what is the change in the P/V ratio? Calculate how many junits must be: iat fo Dott, Paehenl fake lt fe Wyte Cab RAT ED = 40%; Profit= 7 (AMOS 5,9, 27. Given P/V = 40%; Profit= %2,00,000,Sales €10,00,000; Calculate: (yfxed cost Conpriaple(caep. BMS og000 28, U-Piza delivers pizzas to the dormitories and apartments near a major state university. The cempony’s annual fized expenses are $54,000. The sales price of a pizza is $10, and it costs the company $6 to make and deliver each pizza. (In the folloring requirements, ignore income taxes.) |. Compute the company’s break-even point in units (pizas) using the contribution margin approach |i, What is the contribution margin ratio? li. Compute break-even sales revenues. Use the contribution margin rato in your calculation 'v. How many pizzas must the company sell to earn a target net profit of $60,000? 29. From the following par ilars, find out the Selling price per if PEP is to,be brought down to 9,000 units. Variable cost 3 poy ’,79j000; Selling rice ag. 100, 14) 8 99 nals 10, Ba000 Oufeb, 1998 : rae eA " f 31. The cost figures of 1995 are given: Variable cost per unit =85; Fixed. ge: Sa wily of intense competition to maintain the sales t's proposedSreduce theling prce-font Pre erie mo brik per unit in 1996.Find out the numbers of units to be sold to maintain the profit at tie Sate level in 1995 SOO Lie @ a a ior BA-O0 April, 1999) 32. Given the folio ationyreaiculate (a)P/Vatiog( (CBIR oRieUEn Gales ayproft ak afeatesiof £100 0006) dh eagingsdtertavbl sto geist re 1 02 od, ii Cte 80,000 “10,00 1,20,000 ss (MBA-OU Dec, 1996) 9 relationships pertain to this years budgeted activity Falcon Crest Ltd, Direct Labour hours 300,000 4,00,000 4. 54,000 Total cost(%) 1,29,000 1,54,000 ‘What is the budgeted fixed cost for the year? (MBA-OU March, 2000) 7 setmenttPiss report the folowing: Seling price per unit =*25; Variable cost per unit =*16; Total fixed cost =%50,000, DPetemine the break-even point ip uns ifthe variable costs per unit increase by 25% and taal fied com eso . SESS Unie } eu BEP 2 Bove tints Woes (MBA-OU March, 2000) 35: Apple Co, Lid places before you the following trading results: ic ae Year Sales Profit ee: 1995 0,000 4,000 3o/. f400 3397 7.009 1,600 Find out (a)P/V Ratio and (b)fixed cost. ig (MBA-OU Aug, 1999) 36. What isthe a aratlaceseimenblsesth point = ¥30,00, Prete = 21,500, Fixed cost =26,000, 3000p St} (MBA-OU Aug, 1: 37. ABCLTD A usar empath folowing cata tng tothe yea 199, i oo Fest halt OF t “5 Second half of the year Sales 45,000 50,000 Total cost 40,000 43,000 j‘38. The Trinethra Corporation owns and operates super markets in and around Hyderabad you are given the following corporate ‘budget data for next year. Sales =€100 lakhs) Fixed cost =817 lakhs; Variable cost =*8.2 lakhs. ‘You are required to compute expected operating income for each ofthe folowing deviations from budgeted data consider each case independently. (a) 10% increase in total contribution margin, holding sales constant . 83-78 (b) 10% decrease in total contribution margin ,holding sales constant. 65-6 2- $e (©) 5% increase in fied cost; 73-95" (d) 5% decrease in fixedcost. #5 6.5 (@)_ 8% increase in sales volume; 2+ 4 (08% decrease in sales volume 69 - 45 (g) 109bincrease in fixed costs and 10% increase in sales volume. 62-2 @ (h) S8edtecrease in fixes costs and 5% decrease in variable costs. 3.6.06 (MBA-OU Dec, 2000) 39, The Radha Co-operative Itd on Hyderabad owns and operates twelve super markets in and around Hyderabad city, You are given the following budget of the firm for the year 1998-99. Sales %5,00,000; Fixed expenses ® 82, i gis +4,00,000 (a}Find the P/V ratio, BEP and MOS. (b) Compute the effect on the expected Beira sietpenses ‘and 5% decrease in variable costs, > Rosario Company, which is located in Buenos Aries, Argentina, manufactures a component fixed exsts are 2,000,000, per year. The variable cost ofeach component Is 1000p, and! ee Die: each. The company sold 7,000 components during the prior year. (p denotes the peso, Argentina's national currency. Several ‘countries use the peso as their monetary unit) In the following requirements, ignore income taxes. 1) Compute the break-even point in units li) What will the new break-even point be if fixed cost increase by S per cent? ii) What was the company’s net income for the prior year? WV) The sales manager believes that a reduction in the sales price to 1,400p will result in orders for 1,000 more components each year. What will the break-even point be ifthe price is changed? ‘41, PinkPak Company produced and sold 70,000 backpaks during the year just ended at an average price of $30 per unit. Variable ‘manufacturing costs were $12 per unit, and variable marketing costs were 6 per unit sold. Fixed costs amounted, to $540,000 for manufacturing a a cost ® 8 per record; Variable seling cosu-t per recond, Fixed ;panuiacturiig cost 2,69,000; Fixed selling costs *20,000; Tax rate 40%. You are required to using a contribution margin format pregere Sen Tnage Sabernent + (after tax), If were sold in 26 t8 BEP ig rlipees ii) 1 ai sold," TG the M.0.S ratio, pare ine'06) 43, From the e a a profit ‘oF 81,00,000. + Sales 0000. Fao res 050°? Profit 40,000 Bl, bee Bl iaioot aa (MBA-OU Dec'05) 4, From the folowing calculate |) Cortton pe i Margin 5eaety Volume of sles to earn & profit of % 24,000. Total ved Cost = € 18,000, Total Variable cost = %30,000, Total Sales = & 50,000, Units sold = 20,000. : (MBA-OU March’03) 45. ABC limited and XYZ limited are identical in all aspects and are mana wed by the same group. Their budgeted for the year ending 31* Dec’ 2004 is given below. as eae re WE You ate required to Peltcolare 6 LtD | 2 Find the P/V ratio, BEP and MOS for two firms ia ‘| > Find the sales volutne at which each of the firms will earn a profit of €11,111 Sales 3,33,333 3,33,333 | b. State which (ike ee ‘company is tkely to earn greater profits when the See % yeasts demand for the product is high and when the demand for the Ne oN 55556 aoe Product is low? Justify your answer, (MBA-OU Sept 04) stith Baie 46 From fone particulars you are required to compute profit earned and Break Even Sales for the two different companies | EN Mos Sales e | ‘Company X 40% 50% 8,00,000 (MBA-OU Suly’05) ‘Company Y 30% 40% 4,00,000.Seiten. “} From the following data, find out (\) Sales and (li) New Brook Even Sales, If selling price Is reduced by 10%, Fixed ¢; i ‘4,000, reak:Even Sales € 20,000, Profit € 1,000, Seling price per unit €20 (MBA-OU, Dec 2012/Jan 2013) From the following particulars, you are requifed to calculate: (1) P/V ratio (il) B/E sales (Ii) Profit when sales are %25,00,000 AW) Sales required to earn a profit of 85,00,000 and (¥) Margin of safety In both the year _ MBA-OU, Dec 2013) [Year] Tota sates @ Total Cost (®) | : 2010 22,23,000 19,83,600 \ 2011 24,51,000 21,43,200 1 48. From the following data, calculate: a) _BEP expressed in amou 'b) How many units must be ‘sold to earn a net Sting price per unit € 20, Variable cost per 4G Baskin Inc,, a manufacturing of qual ‘years. Since her business has growr Year to maintain the company’s gi Variable cost per ice cream maker Direct Labour $ 11.75 Direct material $ 15.25 Variable Overhead $ 5.00 Total variable costs. $32.00 Fixed Cost — $ 31,000 Manufacturing $ 42,000 ~ Selling Total fi oi Sell 65.00 Expected sales (units) $30,000, GO Robin Me Wit nd manages a general merchancisa.store in qurural area,of yrginia, Robig, sells appli auto parts, a i ng ade variety iy Kise, Because 8} norm cyclical fluctu he luctuati ning to use CVP anal nd he t iefiuifithese has the following int year: ‘operating costs represent rent, insurance, and Gross margin $227,500, Operating Costs $105; salaries that are entirely fixed. Sales 000, Operating inco: int of sales In rupees, Number of unis that must be sold to ea ; Income of 10% of sales? Unit & 14 & Total Fixed cost & 792,000 (MBA-OU, April/May 20. K Mirza Rafathulla ig ity electric ice cream makers, has experienced a steady growth In sales over the past few m, Maty Baskin, the president, : rowth, To prepare for the growth, the accountant prepared the following data for the current in believes she needs an aggressive advertising campaign next ') If the cost and sales price remain the same, what is the projected profit for the coming year? What is the break-even point in units for the coming year? ww) hhas set the sales target for 35,000 ice cream makers. ‘which she thinks she can achieve by an additional fixed seling expense of $2,00,000 for advertising. All other costs remain stant. What will be the before-tax income If the agdtional '$2,00,0094spent on advertising a 700, next year, is the requ tet equal the + curregtiVear's micome at 3t lagers, cthig ‘seasonal and is r the Js, while $650,000, Cost of goods soldse122,500, se $122,500. What is Robin's margin of safety In dollars? ‘What is the margin of safety ratio? What is Robin's MOS and operati $F. Tom Western Wear is a western hat retailer in Dallas, hhas approximately the same price and invoice (purchase) cost, as shown in the followit Commission to encourage them to be more aggressive in their and sales growth at Tom's has been great. The business is very competitive, knowledgeable and courteous staff to attract and retain customers who otherwise Because of the rapid growth in sales, Tom is also finding the management Texas. Although Tom’s carries numerous sty ing profit f sales should fall to $500,000, es of western hats, each hat ing table. Sales personnel receive large the Dallas economy is really humming, however, and Tom has relied on his might go to other western wear stores, sales efforts. Currently, t of ‘certain aspects of the business, such as restocking of inventory and hiring and training new salespeople, more dificult. 150,000 Particulars $ Sales Price 30.00 er unit variabj e gl woke cee DO VOMG ies ‘Sales Commission # _Pee450 Total per unit ‘hull Behe ‘Total annual fixed expenses. it Pie 25,000 108,000 Calculate the annual breakeven point in unit sales and dollar sales If Tom's sells 20,000 tats, what is its net income or loss? If Tom’s sells 25,000, what is its margin of safety and margin of safety ratio? . Tom is considering the elimination of sales commission completely and increasingly salaries by $82,000 annually, What would be the new breakeven point in units? What would be the net income or loss is 20,000 hats are sold with new salary plan? Identify and discuss the strategic issues in the decision to eliminate sales commission. How do these strategic concerns affect Tom's decision?aiyind siti tale « Formuda Shut Profle Volume hele a ee O Lain: ioe ae Felling trite @ rakion MEE 10 OLhange LEER oe ja Leles @ Solin) Arce fo thal a. HE j100 pg Verve EP Mmos- Ao oO Sado ot Mos = Psapp Ww hols