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XYZ Manufacturing Inc. has a maximum production capacity of 50,000 units per month. Below is the cost data for different activity levels: Particulars of Costs

XYZ Manufacturing Inc. has a maximum production capacity of 50,000 units per month. Below is the cost data for different activity levels:

Particulars of Costs

30,000 units

40,000 units

50,000 units

Direct Material

₹18,00,000

₹24,00,000

₹30,00,000

Direct Labour

₹22,50,000

₹30,00,000

₹37,50,000

Total Factory Overheads

₹30,00,000

₹40,00,000

₹50,00,000

You are required to calculate:

  1. The total cost at an activity level of 45,000 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 20% on cost is desired.
  4. The breakeven point in units if the fixed overheads are ₹10,00,000 per month and the variable cost per unit is constant.

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