The following information is available for a gel pen making business.

Sales Price of the pen Rs. 100/- each

Cost of refill Rs. 10/- per refill.

Ink cost Rs. 5 per ml. 2 ml of Ink is required for each pen.

Ball bearings Rs. 3 per bearing

Sticker on the pen Rs. 2 per sticker.

Fixed Costs Rs. 6,00,000 p.a.

 

Calculate with formulae:

a) Contribution

b) PV Ratio

c) BE Ratio (in no. of units and value)

d) MOS

e) Number of gel-pens to be sold to get a profit of Rs. 20,000/-

Answer rating: 100% (QA)

Given Sales price of the pen rs 100each cost of refill10per refill ... View the full answer