Following information is available with respect to ABC Ltd.
Selling Price 1400
Fixed Cost 168000
Variable Cost 780
Capacity (in units) 8000
The pedicted units of output are 0 to 1000 units with a gap of 100 units
Based upon the information, you are required to compute the following
a. Cost Volume Profit Chart
b. Break Event Point (in units and rupees)
A firm wants to replace one of its existing machines. Two alternative machines - Machine A and Machine B are under consider
The costs associated with these alternatives are as follows:
Variable cost per unit (₹)
Total Fixed Cost per annum (₹)
You are required to:
(i) Calculate the cost indifference point and show it graphically with units starting from 0 to 8000 with a gap of 500 units
(ii) Suggest the most economical alternative machine to replace the existing one when the expected level of annual production
(a) 6,000 units
MACHINE A MACHINE B
135 35
75000 375000
(b) 1500 units
Problem 12. Super India Ltd. is producing three products X, Y and Z. The data for the three products is given below:
X Y Z
Maximum Capacity (units) 5000 2000 3000
Direct material @ Rs.10 per Kg. 40 10 30
Other variable costs (Rs.) 36 25 10
Selling price (Rs.) 100 50 60
Fixed cost (unavoidable) (Rs.) 20000 15000 10000
Calculate the best product-mix in each of the following three independent cases: (i) Total availability of raw materials is limited
(ii) Under a trade agreement the firm cannot produce more than 7,500 units of three products taken together.
(iii) Total sales value of the three products cannot exceed Rs.6,50,000
Use Excel Solver.
ducts is given below:
ability of raw materials is limited to 18,000 kg.
cts taken together.
XYZ provides you the following estimated information relating to next year of its operations:
Sales 50,000 units
Selling price Rs. 20 per unit
Variable cost (Out of pocket costs) Rs.12 per unit
Fixed cost per annum Rs. 1,20,000
Calculate the following :
(i) Required sales to break even;
(ii) Required sales to earn a profit of Rs.1,00,000 (iii) Required sales to earn a profit of Rs.4 per unit;
(iv) Required sales to earn a profit of 15% on sales.
(v) Additional sales required to cover an additional expenditure of Rs.20,000 in fixed cost while maintaining the estimated pro
Use Goal seek option wherever it is possible
maintaining the estimated profit.