A business produces 200 units of a product by making the following expenditure:
(i) Materials—Rs. 30,000; (ii) Labour—Rs. 20,000; (iii) Factory Overheads—Rs. 4,000; (iv) Administrative Overheads—Rs. 5,754; and (v) Selling and Distribution Overheads—Rs. 1,500.
The products are sold at a price of Rs. 400 per unit.
The above expenditures are classified into fixed and variable types as follows:
Expenditure |
Fixed |
Variable |
i. Materials |
Nil |
100% |
ii. Labour |
50% |
50% |
iii. Factory Overheads |
25% |
75% |
iv. Administrative Overheads |
100% |
Nil |
v. Selling & Distribution Overheads |
60% |
40% |
From the above information, determine the following:
- Total Variable Costs and Fixed Costs.
- Contribution.
- P/V Ratio.
- BEPS in units and in value.