Model 3: Contribution, P/ V ratio, sales (volume) and profit]
From the following data, calculate:
- BEP (in rupees) sales value.
- Number of units that must be sold to earn a profit of Rs. 1,00,000 per year.
- Number of units that must be sold to earn a net income of 20% on sales.
|
Sales price |
25 per unit |
|
Variable manufacturing costs |
12 per unit |
|
Variable selling costs |
5 per unit |
|
Fixed factory overheads |
6,25,000 per year |
|
Fixed selling costs |
2,75,000 per year |