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BCD Pharmaceuticals Ltd. has a maximum production capacity of 500,000 units per month. Below is the cost data for different activity levels: Particulars of Costs

BCD Pharmaceuticals Ltd. has a maximum production capacity of 500,000 units per month. Below is the cost data for different activity levels:

Particulars of Costs

200,000 units

300,000 units

400,000 units

Direct Material

₹50,00,000

₹75,00,000

₹1,00,00,000

Direct Labour

₹40,00,000

₹60,00,000

₹80,00,000

Total Factory Overheads

₹35,00,000

₹52,50,000

₹70,00,000

You are required to calculate:

  1. The total cost at an activity level of 350,000 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 30% on cost is desired.
  4. The breakeven point in units if the fixed overheads are ₹15,00,000 per month.

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