Model 9: Determination of costs (fixed and variable)

A manufacturer provides you the following data regarding his operations for the year:

Break-even sales

5,80,000

Direct materials

90,000

Gross profit

1,50,000

Contribution margin

2,00,000

Direct labour

2,00,000

Sales

8,00,000

Variable manufacturing overhead

10,000

You are required to calculate:

  1. Fixed manufacturing overhead.
  2. Fixed selling and administrative overhead.
  3. Variable selling and administrative overhead.