Consider the following data of a company for the year 1997: Sales = Rs. 1,20,000 Fixed cost = Rs. 25,000 Variable cost = Rs. 45,000 Find the following: (a) Contribution (b) Profit (c) BEP (d) M.S.

EXAMPLE 2.5 In the design of buildings to be constructed in Alpha State, the designer is considering the type of window frame to specify. Either steel or aluminium window frames will satisfy the design criteria. Because of the remote location of the building site and lack of building materials in Alpha State, the window frames will be purchased in Beta State and transported for a distance of 2,500 km to the site. The price of window frames of the type required is Rs. 1,000 each for steel frames and Rs. 1,500 each for aluminium frames. The weight of steel window frames is 75 kg each and that of aluminium window frame is 28 kg each. The shipping rate is Re 1 per kg per 100 km. Which design should be specified and what is the economic advantage of the selection