PROBLEM $1$

Cost Volume Profit Analysis

The following information are provided to you:

Unit Sale Price

Rs$.5$

Unit Variable Cost Rs$.3$

Fixed Cost

Rs$.1,00,000$

Required: $($a$)\frac{P}{V}$ ratio.

$($b$)$ BEP Sales Volume in units.

$($c$)$ BEP Sales Volume in amount.

$($d$)$ Sales Volume in units to earn Rs$.60,000$ after tax $($Tax rate $40\%).$

$($e$)$ Sales volume in unit to earn Rs$.0\mathrm{.}40$ per unit.

$[$Ans$.$: $($a$)40\%($b$)50,000$ units $($c$)$ Rs$.2,50,000$

$($d$)1,00,000$ units $($e$)62,500$ units$]$