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Q2 Marginal Costing Consider the following information of BETA Ltd. Name of the Product Bell Calculator Sales Price Rs. 50 Variable Cost Rs. 40 Fixed
Q2 Marginal Costing Consider the following information of BETA Ltd. Name of the Product Bell Calculator Sales Price Rs. 50 Variable Cost Rs. 40 Fixed cost Rs. 200,000 Actual Sales 22,000 units Budgeted Sales 40,000 units Target profit Rs. 50,000 Required: a. Calculate the Break -even sales in units & in dollars b. Calculate the C/S ratio c. Calculate the margin of safety d. Calculate the amount of profit on the current sales level. e. How many more units have to sold to achieve the target profit of the firm? f. What should be done in current scenario if company want to decrease its break- even level of sales
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