Question

Sony/Desktop/Learning 20Activity%20200%20account.pdf Problem 2: M.K. Ltd, manufactures and sells a single product X whose selling price is 40 per unit and then 16 per unit 6) If the Fixed Costs for this year are 4.80,000 and the annual sales are at 60% margin of safety calculate the rate of net return on sales, assuming an income tax level of 40% product in de 6.86.600 (i) For the next year, it is proposed to add another product line Y whose selling price would be 50 per unit and the variable cost 10 per unit. The total fixed costs are estimated at 6.66.600. The sales mix of X Y would be 7:3. At what level of sales next year, would M.K. Lid break even? Give separately for both X and Y the bron even sales in rupee and quantities

Answer 1

3) Contribition per unit = Selling price - Variable cost 240-216 E 24 Breakeven point = 20000 units z 48000O. 2 24 Percentage of margin satety Atual sales - Breat even sales Actual sales Actual sales KO 20,000unit 60'% Actual sales Actual sales 50,000 units Porticulars Sales value (50,000 units x E40) 20,00,000 (8,00,000) Variable Contributi on co st (so000 unitsa El6) 12,00, D00 S4,80,000) -2 Fined cost Profit 7,20,000 (2,88,000) -) Tan @404 433000 Net return Rate of néet return sales - 43200O x 100 on 20,00, 000 21.6%

1) Producte Particulars y (2) Selling price pu Variable cost 50 10 pu Contribution pu Individual products contribation margin. 16 40 24 80%. 60l. 2보 지00) x 100 Costribution margin (x&Y) = 66.%. +80%.x 10 60% x7 Z10,10,000 ( 26,66,600 66/ sales Break even Breat eveo sales )7,675 unity i.e Z 70 7,000 of 10,10,000 6O6O unity 23,03,000 Y- 30%