Answers for Q1,2,3,4

Compute and interpret various ingredients of the Cost-Volume- Profit Analysis from the following information's: A retail dealer in garments is currently selling 48, 000 shirts annually. He supplies the following details for the year ended 31st March 2020. Particulars Amounts Selling price per shirt 1,600 Fixed Cost: Staff salaries 960,000 General Office Cost 320.000 Advertising Cost 320,000 Variable cost per shirt: 1.200 You are required to answer the following each part independently: Level 1 1. Calculate Break Even Point in sales revenue (in amount) and number of shirts sold (in units). 2.Calculate Margin of Safety in sales revenue (in amount) and number of shirts sold in units). 3.Calculate profit/volume ratio. Level 2 Assuming that in the coming year, an additional staff salary of $112,000 is anticipated. 50% increase in general office cost is anticipated, 40% increase in advertising cost is anticipated, and price of shirt is likely to be increased by 15%. 4.Calculate Break Even Point in sales revenue (in amount) and number of shirts sold in units). 5. Calculate profit/volume ratio