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