Group B

(Answer any Four: Each question carries 5 Marks)

5X4=20

1. On the basis of the following data, compute:

Selling Price per unit Rs 100

Fixed Cost Rs. 40,000 Variable Cost per unit Rs 60 Actual Sales 2,000 units

i. Contribution

ii. Break-Even Point (2+3)

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2. Based on the following data, compute the Degree of Financial Leverage:

Year 1 EBIT Rs 1,00,000

EPS Rs 10,000.

Year 2 Rs 1,50,000

Rs 20,000

3. On the basis of the following data, compute:

(5)

Selling Price per unit Fixed Cost

Variable Cost per unit Actual Sales

Rs 100 Rs 40,000 Rs 60

2,000 units

(a) Margin of Safety

(b) Profit-Volume Ratio (2+3)

4. Based on the following data, compute the Degree of Operating Leverage:

Quantity Produced Variable Cost per unit Selling Price per unit Fixed Expenses

5,000 units Rs 200

Rs. 500

Rs 9,00,000 (5)

5. From the following data compute the Debtors Lag:

Opening Debtors Closing Debtors. Sales

Rs 30,000

Rs 20,000

Rs 3,65, 000 (5)

6. Explain the different types of leverages in brief.