The following informations are available: Fixed Expenses Rs. 50,000 Variable Expenses Rs. 40 p.u. Selling Price Rs.

Question:

The following informations are available:

Fixed Expenses Rs. 50,000 Variable Expenses Rs. 40 p.u.

Selling Price Rs. 60 p.u.

(a) Sales volume to earn a profit of Rs. 50,000

(b) What additional units would be necessary to increase the profit by Rs. 5,000?

[Ans.: Contribution (p.u.) = Rs. 20,

(a) 5,000 units,

(b) 5,250 units.]

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