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Solve both questions ASAP. i give u voteup BREAK EVEN & CVP ANALYSIS 0. No. 01 XYZ Ltd. Provides the following data of its operations:
Solve both questions ASAP. i give u voteup
BREAK EVEN & CVP ANALYSIS 0. No. 01 XYZ Ltd. Provides the following data of its operations: Selling price per unit. - Rs. 18 Variable cost per unit - Rs.10.8 Fixed cost p.a. -Rs. 144.000 For the maximization of profit following outputs and sales volume are expected: Output (units) 0 9000 18000 27000 36000 45000 54000 Required: From the above data determined the break even level of output and sales, at which level of production total revenue is equal to total costs. 0. No. 02 Beta Ltd makes pipes of one type only. Budget for the year 2009 is as follows: Units Rupees Sales 270,000 5,400,000 Variable (Rs.) Fixed (Rs.) Costs: Direct materials 1,080,000 Direct labour 810,000 1,378,800 Production overheads 540,000 Administration overheads 997,200 2,430,000 2,376,000 (a) You are required to calculate: (0) Contribution per unit (ii) Contribution margin ratio (iii) Break even point in both units & sales (iv) Margin of safety ratio (6) Beta Ltd is considering acquisition of a new machine. This will add Rs.472,500 to fixed production overheads but will reduce the labour costs by 50%. All other factors remain the same. You are required to answer the following: (1) What will be the new break even point in terms of both units & sales? (ii) What level of sales will be required to make the acquisition of the machine worthwhileStep by Step Solution
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