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Probem.9 The following is the budget of Cadila Co.: Fixed $ Variable $ Total $ 9,00,000 Budgeted sales: 2,00,000 units @ $25 each Budgeted costs:
Probem.9 The following is the budget of Cadila Co.: Fixed $ Variable $ Total $ 9,00,000 Budgeted sales: 2,00,000 units @ $25 each Budgeted costs: Direct material Direct labour Factory overheads Administration overheads Distribution overheads Total Budgeted profit 9,00,000 10,00,000 7,00,000 3,00,000 6,00,000 1,00,000 5,00,000 3,00,000 18,00,000 26,00,000 44,00,000 6,00,000 Compute the break-even point in the following independent situations if: (i)10% increase is effected in fixed costs. (i) 10% increase is effected in variable costs. (iii) 10% increase is effected in sale price which results in reduction in units sold by 5%. (iv) 10% increase in fixed costs and 5% decrease in variable costs is effected
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