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Normal annual capacity of Karachi Company is 200,000 units and the sales price is Rs.32 per unit. Unit cost of components is as under: Variable
Normal annual capacity of Karachi Company is 200,000 units and the sales price is Rs.32 per unit. Unit cost of components is as under:
Variable cost per unit (Rs.) Fixed Cost(Rs.)
Direct material 9.00 --
Direct labour 10.0 --
Factory overhead 2.00 400,000
Non-manufacturing cost 3.00 100,000
Total cost 24.0 500,000
Required:
- Calculate the breakeven point in rupees
- Calculate the breakeven point in units.
- Compute amount of sales required to earn a profit of Rs.420,000.
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