Q2. Zenith Ltd. manufacturing a product, currently produces at 80% capacity, with a turnover of Rs.800,000,...

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Q2. Zenith Ltd. manufacturing a product, currently produces at 80% capacity, with a turnover of Rs.800,000, at Rs.25 per unit. The cost data are as under: (10 marks) Material cost Rs. 9 per unit Labour cost Rs.4.75 per unit Semi variable cost ( including variable cost of Rs.3.75 per unit) Rs. 180,000 Other Fixed Cost Rs. 90,000 Calculate: 1. Profit Volume Ratio 2. Break Even Point in units and Value 3. Activity level at BEP 4. Current Margin of Safety in units and Value 5. Sale units required to attain a profit of Rs. 135,000 6. New Break Even Sales (units and value), if the Selling Price p.u. falls by a rupee, but the material cost p.u increase by 10% Q2. Zenith Ltd. manufacturing a product, currently produces at 80% capacity, with a turnover of Rs.800,000, at Rs.25 per unit. The cost data are as under: (10 marks) Material cost Rs. 9 per unit Labour cost Rs.4.75 per unit Semi variable cost ( including variable cost of Rs.3.75 per unit) Rs. 180,000 Other Fixed Cost Rs. 90,000 Calculate: 1. Profit Volume Ratio 2. Break Even Point in units and Value 3. Activity level at BEP 4. Current Margin of Safety in units and Value 5. Sale units required to attain a profit of Rs. 135,000 6. New Break Even Sales (units and value), if the Selling Price p.u. falls by a rupee, but the material cost p.u increase by 10%

Answer rating: 100% (QA)

Solution 1 No of unit sold Rs 8000002532000 unit Profit Volume ratio ContributionSales Sales Rs 8000... View the full answer