need project note

Orebined Deluxe 4,250 units 28 1,19,000 0.30 x 4,250 = 1,275.0 0.45 x 4,250 = 1,912.5 Part B 1.6 kgs Padhuka's - Students' Handbook on Strategic Cost Management & Performance Evaluation - CA Final Total 3. Contribution / Income from production of 4250 units each of Aristocrat & Deluxe Particulars Aristocrat (a) Production Quantity 4,250 units (b) Contribution per unit (WN 1e) 31 32,50,750 (c) Total Contribution (a x b) 1,31,750 3,400.00 (d) Time used in Department A (in hours) Nil 0.50 x 4,250 = 2,125 (e) Spare Capacity in Dept A (3,400 - d) hrs 3,612.50 ( Time used in Department B (in hours) 0.40 x 4,250 = 1,700 227.50 (9) Spare Capacity in Dept B (3,840 - ) hrs 13,650 (h) Hire Revenue for Dept B Spare Capacity = (3,840 - 3,612.50) * 60 ph 2,64,400 (0) Total Income (c + h) M 10 10.12 Multiple Key Factor - Single Product Decision - Effect of Alternative Prices XLtd supplies Spare parts to an Aircraft Company Y Ltd. The production capacity of X Ltd facilitates production of any one spare part for a particular period of time. Following data for the production of the two different Spare Parts A and B is given Per unit Part A 1.6 kgs Alloy usage 0.25 hrs Machine Time : Machine A 0.6 hrs 0.55 hrs Machine Time : Machine B 0.5 hrs 115 Target Price (3) 145 Total hours available: Machine A 4,000 hours: Machine B 4,500 hours. Alloy available is 13,000 kgs at 72.50 per kg. Variable Overheads per Machine Hour: Machine A: > 80, Machine B: 100 1. identify the Spare Part which will optimize contribution at the Offered Price. 2 If y Ltd reduces Target Price by 10% and offers 60 per hour of unutilized Machine Hour, what will be the Total Contribution from the Spare Part identified above? Solution: 1. Computation of Contribution and Production Decision Particulars Part A Part B (a) Possible Production based on (1) Raw Material availability 13,000 kg = 1.6 kgs = 8,125 units 13,000 kg = 1.6 kgs = 8,125 units (i) Machine A time availability 4,000 hrs = 0.6 hrs = 6,667 units 4,000 hrs : 0.25 hrs= 16,000 units (ii) Machine B time availability 4,500 : 0.5 hrs = 9,000 units 4*000 hrs = 0.55 hrs = 8,1825 (b) Effective Production Quantity (least of (a)] 6,667 units 8,125 units (c) Target Price p.u * 145 115 (d) Variable Costs p.u (i) Materials ( 12.50 x 1.6 kgs) 720 20 Machine A 0.6 hrs x80 = 48 0.25 hrs x 100 = 20 Machine B 0.5 hrs x 100 = 50 0.55 hrs x 100 = 55 Sub-Total Variable Cost p.u. 118 3 95 (e) Contribution du 27 20 (4) Possible Contribution (C x e) Maximum = 1,80,000 1,62,500 2. Computation of Unused Hours Time Part A Machine Part B available Time used Unused Time used Unused A 4,000 hrs 6,667 units x 0.6 hrs = 4,000 hrs NIL 8,125 units x 0.25 hrs = 2,031 hrs B 4,500 hrs 6,667 units x 0.5 hrs = 3,334 hrs 1,166 hrs 8,125 units x 0.55 hrs = 4,496 hrs 1,969 hrs 31 hrs (6) VOH Particulars (a) Revised Contribution pu (b) Revised Total Contribution 3. Computation of Total Contribution with Price Revision Part A Part 27 - ( 145 x 10%) = 12.50 20 - 115 x 10%) = 38.5 6,667 units x 27 - 3 14.50)= 83,338 8,125 units x 20 - 11.50)= 69,06 9.110 CVP Analysis and Decision-Making Part 2,000 hrs x 60 = 1,20,000 Particulars Part A Reimbursement at 60 1.166 hours * 60 = 69,960 hour for unused hours c) Total Contribution (1) 1,53,298 Vonclusions Part 8 may be produced to maximize Income in the revised situation. 1,89,063 4 12 13 ultiple Key Factor - Product Mix Decision N 96, M 06 Company manufactures no products and Y. The Company's Fixed Cost per annum is 5 Lakhs. These products are sold for 288 per unit of X and 432 per unit of Y. Standard cost data are - Particulars Product X Product Y Direct Raw Material 140 780 Lirect Wages & per hour in Departments: 1 48 72 2 24 48 3 772 396 Variable Overheads 32 28 The Company operates 8 hours shift for 300 days in a year, Number of workers engaged by each department is - Department 1 2 3 4 Sumber of Workers 45 24 27 35 How many units of each product would be manufactured and what is the resultant maximum profit, if numbers of employees cannot be increased or transferred? If only one product is to be manufactured by the Company, which of the products would give the maximum profit and what is the amount of such profit? SMO, What will be the production decision if Raw Material is restricted to, and only one product is to be manufactured? Solution: 1. Computation of time required per unit and maximum possible production Product X Dept. Total Available DLH Product Y His reqd pu Possible Prodn His reqd pu Possible Prodn 48:18 1,08,000 hrs = 6 hrs pu 2728 1,08,000 hrs - 9 hrs pu 1 8 x 300 x 45 = 1,08,000 = 6 hours = 18,000 units = 9 hours 12,000 units 1 24:38 57,600 hrs - 3 hrs pu 488 57,600 hrs 6 hrs pu 2 8 x 300 x 24 = 57,600 = 3 hours = 19,200 units = 6 hours - 9,600 units 72 +8 64,800 hrs - 9 hrs pu 3 8 x 300 x 27 = 64,800 9 hours = 7,200 units 1968 86,400 hrs - 12 hrs pu 4 8 x 300 x 36 = 86,400 = 12 hours = 7,200 units Total Hours required 18 hours p.u. 27 hours p.U. from the above, it is observed that the maximum possible output of Product X is 7,200 units (due to constraints in Department 3) and for Product Y, the maximum possible output is 7,200 units (due to constraints in Department 4), 2. Evaluation of Alternatives and Determination of Possible Production Quantity Since output is restricted to 7, 200 units (from above), the following alternatives are available - Alternative 1: Produce 7,200 units of Product X and use the balance capacity for production of Product Y Alternative 2: Produce 7,200 units of Product Y and use the balance capacity for production of Product X. Production Plan under Alternative 1 Particulars Dept 1 Dept 2 Dept 4 1,08,000 57,600 64,800 86,400 7,200 x 6 7,200 x 3 7,200 x 9 ) DUH required for 7,200 units of X = 43,200 + 21,600 - 64,800 Nil 64,800 Nil 36,000 86,400 ) Balance DLH available (a - b) 79,200 + 9 36,000 = 6 86,400 - 12 Balance possible production of Product Y - 7,200 units - 6,000 units Not read 7,200 units ance, effective production under Alternative I will be = 7,200 units of X and 6,000 units of Q (least of (d)). Dept 3 2) Total Available DLH 9.111 Dept 3 64,800 Production Plan under Alternative 2 Particulars Dept 1 (a)Total Available DLH 1,08,000 (b) DLH required for 7,200 units of Y 7,200 x 9 = 64,800 (c) Balance DLH available (a - b) 43,200 (d) Balance possible production of Product X 43,200 : 6 = 7,200 units Nil Dept 4 86,400 7,200 x 12 = 86,400 Nik Dept 2 57,600 7,200 x 6 = 43,200 14,400 14,400 : 3 4,800 units Not regd. 64,800 64,800 - 9 = 7,200 units Hence, effective production under Alternative 2 will be = 4,800 units of x [least of (d)] and 7,200 units of Q. Particulars (a) Selling Price pu (b) Variable Costs pu: Material Cost pu Labour Costs pu VOH Cost pu 3. Product-wise Contribution Analysis Product X 288.00 * 40.00 (48 + 24 +72) = 144.00 32.00 Sub-Total 216.00 72.00 18 hours 74.00 Product Y 432.00 80.00 (72 +48 +96) = 216.00 28.00 324.00 108.00 27 hours (c) Contribution pu (d) Total DLH required (WN 1) (e) Contribution per DLH (C = d) Rank based on (e) above 4.00 I 4. Profitability of the above alternatives Alternative 7,200 units of X and 6,000 units of Y 4,800 units of X and 7,200 units of Y Contribution (7,200 x 272) + (6,000 x 108) = ? 11,66,400 (4,800 x 772) + (7,200 x 108) = 11,23,200 Less: Fixed Costs 5,00,000 5,00,000 Profit * 6,66,400 6,23,200 Decision: Alternative 1, i.e. 7,200 units of X and 6,000 units of Y, is preferable due to higher profits. 5. Single Product Decision Maximum Possible Output 7,200 units of Product X Contribution (7,200 x 72) = 5,18,400 Less: Fixed Costs 5,00,000 Profit 18,400 Decision: Product Y is preferable, if only one product is to be produced. 7,200 units of Product Y (7,200 x 108) = 7,77,600 35,00,000 2,77,600 6. Effect of Restriction in availability of Raw Material upto 5,40,000 Particulars Product X Product Y (a) Material Cost per unit (given) 40 780 (0) Possible Output if RM Value is restricted 35,40,000 = 40 = 13,500 units 35,40,000 = 380 = 6,750 units (C) Possible Output based on DLH 7,200 units 7,200 units (d) Effective Possible Output (least of b&c) 7,200 units 6,750 units (e) Contribution per unit 372 108 (1) Possible Total Contribution (d = e) 35,18,400 Decision: If RM is restricted to 25,40,000 and only one product is to be produced, Product Y should be preferred, due to 7,29,000 higher contribution and profits. 10.14 Multiple Key Factor - Product Mix Decision Ezee Ltd makes two products, E and Z. All units produced are sold. There is no inventory buildup. Production facilities may be used inter-changeably for both the products. Sales Units are the Limiting Factor. The following information is given: M 12 9.112 Dirt type of BEP situation. CVP Analysis and Decision-Making Present Level Proposed Increase E Total Z Total E Z Sontribution / unit 25 20 Fixed Cost 46,000 47,500 Bales Units (nos) 3,000 4,000 5,000 2,000 Yor increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the Spereased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit (3) E Z 4001-5000 20 15 5001-5000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. ( What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 47,500 to be incurred? (Present Product Mix need not be maintained). m F you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production? Folution: 1. Computation of BEQ with Present Mix of 3:2 Particulars E Z Total a) Contribution per unit 725 * 20 Sales Mix Ratio 3 75 c) Overall Contribution Ratio (a xb) 40 115 (d) To achieve BEQ, Required Contribution = Fixed Cost of 46,000 to 30,000 * 16,000 3 46,000 earned in the ratio of 75 : 40 1,200 units 800 units e) Hence, Required BEQ = (d = a) 2,000 units 2 2. Statement of Product Ranking at different sale quantity levels Particulars Product E Product z Jale Quantity (units) Upto 4000 4001 - 5000 5001 - 6000 Upto 4000 4001 - 5000 5001 - 6000 Contribution pu ) 25 20 15 20 15 10 Ranking I II III II ITI IV 3. Minimum Addnl Quantity to recover Additional Fixed Costs (as per ranking preference in Working Note 2). b) Additional Fored Cost to be recovered 47,500 ) I Rank: Additional 1,000 units of E with Contribution of 25 per unit. (25 x 1000) (25,000) Balance Foxed Costs to be Recovered (a - b) 22,500 JA) II Rank: Additional 1,000 units of either E or Z with Contribution of 20 p.u. (20 x 1000) (20,000) e) Balance Foxed Costs to be Recovered (c-d) 2,500 PO II Rank: Additional units of either E or Z (as per previous decision) with Contribution of 20 p.u. (2500) Note: Number of units to be sold = ? 2,500 = ? 20 p.u = 125 units Plumber of Units from which All Fixed costs are recovered is as under - Particulars E Option 1 Given 3,000 + WN 3(b) 1,000 + WN 3(d) 1,000 Given 2,000 + WN 3(0) 125 5,000 units = 2,125 units Given 3,000 + WN 3(b) 1,000+ WN 3(1) 125 Given 2,000 + WN 3(d) 1,000 = 4,125 units 3,000 units Z Pption II 9.113 Orebined Deluxe 4,250 units 28 1,19,000 0.30 x 4,250 = 1,275.0 0.45 x 4,250 = 1,912.5 Part B 1.6 kgs Padhuka's - Students' Handbook on Strategic Cost Management & Performance Evaluation - CA Final Total 3. Contribution / Income from production of 4250 units each of Aristocrat & Deluxe Particulars Aristocrat (a) Production Quantity 4,250 units (b) Contribution per unit (WN 1e) 31 32,50,750 (c) Total Contribution (a x b) 1,31,750 3,400.00 (d) Time used in Department A (in hours) Nil 0.50 x 4,250 = 2,125 (e) Spare Capacity in Dept A (3,400 - d) hrs 3,612.50 ( Time used in Department B (in hours) 0.40 x 4,250 = 1,700 227.50 (9) Spare Capacity in Dept B (3,840 - ) hrs 13,650 (h) Hire Revenue for Dept B Spare Capacity = (3,840 - 3,612.50) * 60 ph 2,64,400 (0) Total Income (c + h) M 10 10.12 Multiple Key Factor - Single Product Decision - Effect of Alternative Prices XLtd supplies Spare parts to an Aircraft Company Y Ltd. The production capacity of X Ltd facilitates production of any one spare part for a particular period of time. Following data for the production of the two different Spare Parts A and B is given Per unit Part A 1.6 kgs Alloy usage 0.25 hrs Machine Time : Machine A 0.6 hrs 0.55 hrs Machine Time : Machine B 0.5 hrs 115 Target Price (3) 145 Total hours available: Machine A 4,000 hours: Machine B 4,500 hours. Alloy available is 13,000 kgs at 72.50 per kg. Variable Overheads per Machine Hour: Machine A: > 80, Machine B: 100 1. identify the Spare Part which will optimize contribution at the Offered Price. 2 If y Ltd reduces Target Price by 10% and offers 60 per hour of unutilized Machine Hour, what will be the Total Contribution from the Spare Part identified above? Solution: 1. Computation of Contribution and Production Decision Particulars Part A Part B (a) Possible Production based on (1) Raw Material availability 13,000 kg = 1.6 kgs = 8,125 units 13,000 kg = 1.6 kgs = 8,125 units (i) Machine A time availability 4,000 hrs = 0.6 hrs = 6,667 units 4,000 hrs : 0.25 hrs= 16,000 units (ii) Machine B time availability 4,500 : 0.5 hrs = 9,000 units 4*000 hrs = 0.55 hrs = 8,1825 (b) Effective Production Quantity (least of (a)] 6,667 units 8,125 units (c) Target Price p.u * 145 115 (d) Variable Costs p.u (i) Materials ( 12.50 x 1.6 kgs) 720 20 Machine A 0.6 hrs x80 = 48 0.25 hrs x 100 = 20 Machine B 0.5 hrs x 100 = 50 0.55 hrs x 100 = 55 Sub-Total Variable Cost p.u. 118 3 95 (e) Contribution du 27 20 (4) Possible Contribution (C x e) Maximum = 1,80,000 1,62,500 2. Computation of Unused Hours Time Part A Machine Part B available Time used Unused Time used Unused A 4,000 hrs 6,667 units x 0.6 hrs = 4,000 hrs NIL 8,125 units x 0.25 hrs = 2,031 hrs B 4,500 hrs 6,667 units x 0.5 hrs = 3,334 hrs 1,166 hrs 8,125 units x 0.55 hrs = 4,496 hrs 1,969 hrs 31 hrs (6) VOH Particulars (a) Revised Contribution pu (b) Revised Total Contribution 3. Computation of Total Contribution with Price Revision Part A Part 27 - ( 145 x 10%) = 12.50 20 - 115 x 10%) = 38.5 6,667 units x 27 - 3 14.50)= 83,338 8,125 units x 20 - 11.50)= 69,06 9.110 CVP Analysis and Decision-Making Part 2,000 hrs x 60 = 1,20,000 Particulars Part A Reimbursement at 60 1.166 hours * 60 = 69,960 hour for unused hours c) Total Contribution (1) 1,53,298 Vonclusions Part 8 may be produced to maximize Income in the revised situation. 1,89,063 4 12 13 ultiple Key Factor - Product Mix Decision N 96, M 06 Company manufactures no products and Y. The Company's Fixed Cost per annum is 5 Lakhs. These products are sold for 288 per unit of X and 432 per unit of Y. Standard cost data are - Particulars Product X Product Y Direct Raw Material 140 780 Lirect Wages & per hour in Departments: 1 48 72 2 24 48 3 772 396 Variable Overheads 32 28 The Company operates 8 hours shift for 300 days in a year, Number of workers engaged by each department is - Department 1 2 3 4 Sumber of Workers 45 24 27 35 How many units of each product would be manufactured and what is the resultant maximum profit, if numbers of employees cannot be increased or transferred? If only one product is to be manufactured by the Company, which of the products would give the maximum profit and what is the amount of such profit? SMO, What will be the production decision if Raw Material is restricted to, and only one product is to be manufactured? Solution: 1. Computation of time required per unit and maximum possible production Product X Dept. Total Available DLH Product Y His reqd pu Possible Prodn His reqd pu Possible Prodn 48:18 1,08,000 hrs = 6 hrs pu 2728 1,08,000 hrs - 9 hrs pu 1 8 x 300 x 45 = 1,08,000 = 6 hours = 18,000 units = 9 hours 12,000 units 1 24:38 57,600 hrs - 3 hrs pu 488 57,600 hrs 6 hrs pu 2 8 x 300 x 24 = 57,600 = 3 hours = 19,200 units = 6 hours - 9,600 units 72 +8 64,800 hrs - 9 hrs pu 3 8 x 300 x 27 = 64,800 9 hours = 7,200 units 1968 86,400 hrs - 12 hrs pu 4 8 x 300 x 36 = 86,400 = 12 hours = 7,200 units Total Hours required 18 hours p.u. 27 hours p.U. from the above, it is observed that the maximum possible output of Product X is 7,200 units (due to constraints in Department 3) and for Product Y, the maximum possible output is 7,200 units (due to constraints in Department 4), 2. Evaluation of Alternatives and Determination of Possible Production Quantity Since output is restricted to 7, 200 units (from above), the following alternatives are available - Alternative 1: Produce 7,200 units of Product X and use the balance capacity for production of Product Y Alternative 2: Produce 7,200 units of Product Y and use the balance capacity for production of Product X. Production Plan under Alternative 1 Particulars Dept 1 Dept 2 Dept 4 1,08,000 57,600 64,800 86,400 7,200 x 6 7,200 x 3 7,200 x 9 ) DUH required for 7,200 units of X = 43,200 + 21,600 - 64,800 Nil 64,800 Nil 36,000 86,400 ) Balance DLH available (a - b) 79,200 + 9 36,000 = 6 86,400 - 12 Balance possible production of Product Y - 7,200 units - 6,000 units Not read 7,200 units ance, effective production under Alternative I will be = 7,200 units of X and 6,000 units of Q (least of (d)). Dept 3 2) Total Available DLH 9.111 Dept 3 64,800 Production Plan under Alternative 2 Particulars Dept 1 (a)Total Available DLH 1,08,000 (b) DLH required for 7,200 units of Y 7,200 x 9 = 64,800 (c) Balance DLH available (a - b) 43,200 (d) Balance possible production of Product X 43,200 : 6 = 7,200 units Nil Dept 4 86,400 7,200 x 12 = 86,400 Nik Dept 2 57,600 7,200 x 6 = 43,200 14,400 14,400 : 3 4,800 units Not regd. 64,800 64,800 - 9 = 7,200 units Hence, effective production under Alternative 2 will be = 4,800 units of x [least of (d)] and 7,200 units of Q. Particulars (a) Selling Price pu (b) Variable Costs pu: Material Cost pu Labour Costs pu VOH Cost pu 3. Product-wise Contribution Analysis Product X 288.00 * 40.00 (48 + 24 +72) = 144.00 32.00 Sub-Total 216.00 72.00 18 hours 74.00 Product Y 432.00 80.00 (72 +48 +96) = 216.00 28.00 324.00 108.00 27 hours (c) Contribution pu (d) Total DLH required (WN 1) (e) Contribution per DLH (C = d) Rank based on (e) above 4.00 I 4. Profitability of the above alternatives Alternative 7,200 units of X and 6,000 units of Y 4,800 units of X and 7,200 units of Y Contribution (7,200 x 272) + (6,000 x 108) = ? 11,66,400 (4,800 x 772) + (7,200 x 108) = 11,23,200 Less: Fixed Costs 5,00,000 5,00,000 Profit * 6,66,400 6,23,200 Decision: Alternative 1, i.e. 7,200 units of X and 6,000 units of Y, is preferable due to higher profits. 5. Single Product Decision Maximum Possible Output 7,200 units of Product X Contribution (7,200 x 72) = 5,18,400 Less: Fixed Costs 5,00,000 Profit 18,400 Decision: Product Y is preferable, if only one product is to be produced. 7,200 units of Product Y (7,200 x 108) = 7,77,600 35,00,000 2,77,600 6. Effect of Restriction in availability of Raw Material upto 5,40,000 Particulars Product X Product Y (a) Material Cost per unit (given) 40 780 (0) Possible Output if RM Value is restricted 35,40,000 = 40 = 13,500 units 35,40,000 = 380 = 6,750 units (C) Possible Output based on DLH 7,200 units 7,200 units (d) Effective Possible Output (least of b&c) 7,200 units 6,750 units (e) Contribution per unit 372 108 (1) Possible Total Contribution (d = e) 35,18,400 Decision: If RM is restricted to 25,40,000 and only one product is to be produced, Product Y should be preferred, due to 7,29,000 higher contribution and profits. 10.14 Multiple Key Factor - Product Mix Decision Ezee Ltd makes two products, E and Z. All units produced are sold. There is no inventory buildup. Production facilities may be used inter-changeably for both the products. Sales Units are the Limiting Factor. The following information is given: M 12 9.112 Dirt type of BEP situation. CVP Analysis and Decision-Making Present Level Proposed Increase E Total Z Total E Z Sontribution / unit 25 20 Fixed Cost 46,000 47,500 Bales Units (nos) 3,000 4,000 5,000 2,000 Yor increase in quantities above 4,000 units for each product, there will be an increase in Variable Selling Costs, (for the Spereased portion only), thereby reducing the Contribution per unit to the following figures: Units Contribution per unit (3) E Z 4001-5000 20 15 5001-5000 15 10 Above 6000 No sales possible. For the present level, find the Break-Even Point with the present product mix. ( What is the minimum number of incremental units to be sold to recover the Additional Fixed Cost of 47,500 to be incurred? (Present Product Mix need not be maintained). m F you are allowed to choose the best product mix for the incremental level, (while taking the present mix given in the First Table above for the present level), what would be the individual product quantities and the corresponding Total Contributions, the Total Average Contribution per unit and the Total Profits for the complete production? Folution: 1. Computation of BEQ with Present Mix of 3:2 Particulars E Z Total a) Contribution per unit 725 * 20 Sales Mix Ratio 3 75 c) Overall Contribution Ratio (a xb) 40 115 (d) To achieve BEQ, Required Contribution = Fixed Cost of 46,000 to 30,000 * 16,000 3 46,000 earned in the ratio of 75 : 40 1,200 units 800 units e) Hence, Required BEQ = (d = a) 2,000 units 2 2. Statement of Product Ranking at different sale quantity levels Particulars Product E Product z Jale Quantity (units) Upto 4000 4001 - 5000 5001 - 6000 Upto 4000 4001 - 5000 5001 - 6000 Contribution pu ) 25 20 15 20 15 10 Ranking I II III II ITI IV 3. Minimum Addnl Quantity to recover Additional Fixed Costs (as per ranking preference in Working Note 2). b) Additional Fored Cost to be recovered 47,500 ) I Rank: Additional 1,000 units of E with Contribution of 25 per unit. (25 x 1000) (25,000) Balance Foxed Costs to be Recovered (a - b) 22,500 JA) II Rank: Additional 1,000 units of either E or Z with Contribution of 20 p.u. (20 x 1000) (20,000) e) Balance Foxed Costs to be Recovered (c-d) 2,500 PO II Rank: Additional units of either E or Z (as per previous decision) with Contribution of 20 p.u. (2500) Note: Number of units to be sold = ? 2,500 = ? 20 p.u = 125 units Plumber of Units from which All Fixed costs are recovered is as under - Particulars E Option 1 Given 3,000 + WN 3(b) 1,000 + WN 3(d) 1,000 Given 2,000 + WN 3(0) 125 5,000 units = 2,125 units Given 3,000 + WN 3(b) 1,000+ WN 3(1) 125 Given 2,000 + WN 3(d) 1,000 = 4,125 units 3,000 units Z Pption II 9.113