The following is the budget of ABC Ltd:

Particulars

Fixed Cost
Rs.

Variable Cost Rs.

Total Rs.

Budgeted sales:1,00,000 units @ Rs. 10 per unit

10,00,000

Budgeted costs:

Direct material

1,80,000

Direct labour

2,00,000

Factory overhead

1,40,000

60,000

Administration overhead

1,20,000

20,000

Distribution overhead

1,00,000

60,000

Total

3,60,000

5,20,000

8,80,000

Budgeted profit

1,20,000

Compute the BEPs in the following independent situations, if:

  1. a 10% increase is effected in the fixed costs.
  2. a 10% increase is effected in the variable costs.
  3. a 10% increase is effected in the sales price which will result in a reduction in units sold by 5%.
  4. a 10% increase in the fixed costs and a 5% decrease in the variable costs is effected.