Question
A retail dealer in Auto Parts is currently selling 15,000 Auto Parts annually. He supplies the following details for the year ended December 31, 2009
A retail dealer in Auto Parts is currently selling 15,000 Auto Parts annually. He supplies the following details for the year ended December 31, 2009
DETAILS | AMOUNT (Rs.) |
Seling Price Per Unit | 200 |
Variable Cost Per unit | 120 |
Fixed Costs : | |
Staff Salaries | 3,00,000 |
General Office Cost | 1,00,000 |
Advertising Cost | 80,000 |
(a) Calculate the break even point and margin of Safety.
(b) Assume that 12,000 Auto Parts were sold during the year. Find out the net profit of the firm
Assuming that in 2010 the rate of factory over heads went up by 20%, dist. expenses went down 1 by 10%, and selling expenses went up by 12 2 %; at what price should the work be quoted so as to earn the same rate of profit on the selling price as in 2009. Show full working. It may be noted that factory overheads are based on direct wages while administration, selling and distribution expenses are based on factory cost.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started