Group Assignment 1 1. Complete the missing data for each of the following independent cases: Information Case A Case B Case C Selling price /unit Rs 2 ? ? Variable cost/unit Rs 1.10 Rs 1 ? Fixed costs Rs 18000 ? Rs 30000 Contribution/unit ? Rs 2 ? Break even point (BEP in units) ? 10000 5000 Break even point (in value) ? ? ? Profit if sales, in units, are 20% ? ? ? Above the BEP In case C, variable costs are equal to 60% selling price. 2. The following information is made available on XYZ ltd: Selling price per unit is Rs.30 Variable cost per unit is Rs.21 Fixed cost is Rs.360000 Sales volume is 45000 units Calculate all the Break even analysis ratios and verify the profit. 3. The following information is available for 70% capacity utilization (7000 units). Particulars Amount (in Rs) Direct materials 350000 Direct labour 210000 Direct expenses 140000 ----------- Total cost of variable expenses 700000 Fixed admn expenses 200000 Fixed selling expenses 200000 ----------- Total cost of manufacture 1100000 ----------- Calculate marginal cost under the following two scenarios - (a) when the capacity increases to 80% assuming, no change in fixed cost. The selling price offered is Rs 120. Ananlyse and recommend (b) When the fixed costs increase to 90%, both the fixed costs increase by 15%. Should the company accept an order at a selling price of Rs 175 per unit? (c) If the order is accepted, what is the profit or loss on the incremental capacity under both scenarios?