Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

R Company has prepare the following projections for the coming year 2008: Rs. Sales 150,000 Variable cost 112,500 Contribution margin 37,500 Fixed cost 20,000 Net

R Company has prepare the following projections for the coming year 2008:

Rs.

Sales 150,000

Variable cost 112,500

Contribution margin 37,500

Fixed cost 20,000

Net income 17,500

Required:

  1. Compute the following:
  1. Breakeven sales in rupees.
  2. Margin of safety in rupee and in percentage(2 decimal places).
  1. A minimum unit to be sold to breakeven, if the sale price is Rs.15/unit (round off to whole number).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1118725786, 978-1118725788

More Books

Students also viewed these Accounting questions