Prakash Ltd. has installed capacity of manufacturing 20,000 units per annum. It is presently at 50% of installed capacity. For the coming years the budget is as follows:

Productions/Sales 16,000 Units Costs: Rs.

Direct Materials 15,60,000 Direct Wages 1,20,000 Factory Expenses 1,60,000 Administration Expenses 50,000 Selling Expenses 40,000 Profit 2,00,000 Factory and selling expenses are variable to the extent of 40%. Calculate B.E.P. capacity utilisation per cent. [Ans.:

1.

Sales = Rs. 21,30,000;

2.

VC (p.u.) = Rs. 133.125;

3.

VC (Total) = Rs. 17,60,000;

4.

VC (p.u.) = Rs. 110;

5.

Fixed Cost = Rs. 1,70,000 6.

B.E.P. (Units) = 7,351 Units 7.

Capacity BEP (%) = 36,76%]