the following cost data relates to abc ltd for 2009 608771

Model 7: P/ V ratio, BEP, margin of safety determining the effect of increase/decrease in fixed costs, variable costs and selling price

The following cost data relates to ABC Ltd for 2009:

Sales Rs.

Variable costs 50,000

Fixed costs 25,000

Fixed costs 15,000

1. You are required to compute P/ V ratio, BEP and margin of safety at this level.
2. Further, you are required to compute the effect of:
   1. 20% increase in fixed costs.
   2. 10% decrease in fixed costs.
   3. 20% decrease in variable costs.
   4. 10% increase in selling price.
   5. 10% increase in selling price with an increase of fixed overheads by Rs. 3,000.
   6. 10% decrease in sales price accompanied by a decrease of Rs. 2,500 in variable costs.
   7. 20% decrease in sales price.