Cost/Unit

Sales (90000 Units @ Rs 4) Rs. 360,000.00 Rs. 4.00

Cost of goods sold
Direct Materials Rs. 90,000.00 Rs. 1.00
Direct Labor Rs. 90,000.00 Rs. 1.00
Factory overhead
Variables Rs. 18,000.00 Rs. 0.20
Fixed Rs. 80,000.00 Rs. 98,000.00 Rs. 278,000.00 Rs. 0.89
Gross Margin Rs. 82,000.00 Rs. 0.91
Selling Expenses
Variable
Sales Commission Rs. 18,000.00 Rs. 0.20
Shipping Rs. 3,600.00 Rs. 21,600.00 Rs. 0.04
Fixed
Advertising Salaries Rs. 40,000.00 Rs. 61,600.00 Rs. 0.44
Admin Expenses
Variable Rs. 4,500.00 Rs. 0.05
Fixed Rs. 20,400.00 Rs. 24,900.00 Rs. 86,500.00 Rs. 0.23
Net Loss Rs. -4,500.00 Rs. -0.05
A1 Cost/Unit
Sales Rs. 360,000.00 Rs. 4.00
Variable Expenses Rs. 44,100.00 Rs. 0.49
Fixed Expenses Rs. 320,400.00 Rs. 3.56
Contribution Rs. 315,900.00 Rs. 3.51

A2 (a) Cost/Unit
Sales (150000@0.85*4) Rs. 510,000.00 Rs. 3.40
Variable Expenses Rs. 69,000.00 Rs. 0.46
Fixed Expenses Rs. 320,400.00 Rs. 2.14
Contribution Rs. 441,000.00 Rs. 2.94
Profit Rs. 120,600.00 Rs. 0.80

A2 (a) Expected new Vol 135000

New Price Rs. 5.00
New Advertising cost Rs. 190,000.00
New Sales Commision Rs. 67,500.00
Cost/Unit
Sales (135000@ Rs 5) Rs. 675,000.00 Rs. 4.50
Variable Expenses Rs. 106,650.00 Rs. 0.71
Fixed Expenses Rs. 470,400.00 Rs. 3.14
Contribution Rs. 568,350.00 Rs. 3.79
Profit Rs. 97,950.00 Rs. 0.65

A3 New Volume 130000

Target Profit 3185
Cost/Unit
Sales (130000@ Rs 4) Rs. 520,000.00 Rs. 3.47
Variable Expenses Rs. 63,700.00 Rs. 0.42
Fixed Expenses Rs. 459,485.00 Rs. 3.06
Contribution Rs. 456,300.00 Rs. 3.04
Profit Rs. 3,185.00 Rs. 0.02
Increase in Advertising Rs. 139,085.00

A4 Volume 60000
Cost/Unit
Sales Rs. 301,400.00 Rs. 5.02
Variable Expenses Rs. 21,000.00 Rs. 0.35
Fixed Expenses Rs. 280,400.00
Contribution Rs. 280,400.00 Rs. 3.51
Profit Rs. -0.00

A4
Sales (90000 Units @ Rs 4) Rs. 360,000.00
Cost of goods sold
Direct Materials Rs. 90,000.00
Direct Labor Rs. 90,000.00
Factory overhead
Variables Rs. 18,000.00
Fixed Rs. 80,000.00 Rs. 98,000.00 Rs. 278,000.00
Gross Margin Rs. 82,000.00
Selling Expenses
Variable
VARIABLE Sales Commission Rs. 18,000.00
Shipping Rs. 3,600.00 Rs. 21,600.00
Fixed
Advertising Salaries Rs. 40,000.00 Rs. 61,600.00
Admin Expenses
Variable Rs. 4,500.00
Fixed Rs. 20,400.00 Rs. 24,900.00 Rs. 86,500.00
Net Loss Rs. -4,500.00
Cost/Unit
Rs. 4.00 A1 Cost/Unit
Sales Rs. 360,000.00 Rs. 4.00
Rs. 1.00 Variable Expenses Rs. 224,100.00 Rs. 2.49
Rs. 1.00 Fixed Expenses Rs. 140,400.00 Rs. 1.56
Contribution Rs. 135,900.00 Rs. 1.51
Rs. 0.20
Rs. 0.89 A2 (a) Cost/Unit
Rs. 0.91 Sales (150000@0.85*4) Rs. 510,000.00 Rs. 3.40
Variable Expenses Rs. 369,000.00 Rs. 2.46
Fixed Expenses Rs. 140,400.00 Rs. 0.94
Rs. 0.20 Contribution Rs. 141,000.00 Rs. 0.94
Rs. 0.04 Profit Rs. 600.00 Rs. 0.00

Rs. 0.44 A2 (a) Expected new Vol 135000

New Price Rs. 5.00
Rs. 0.05 New Advertising cost Rs. 190,000.00
Rs. 0.23 New Sales Commision Rs. 67,500.00
Rs. -0.05 Cost/Unit
Sales (135000@ Rs 5) Rs. 675,000.00 Rs. 4.50
Variable Expenses Rs. 376,650.00 Rs. 2.51
Fixed Expenses Rs. 290,400.00 Rs. 1.94
Contribution Rs. 298,350.00 Rs. 1.99
Profit Rs. 7,950.00 Rs. 0.05

A3 New Volume 130000

Target Profit 16185
Cost/Unit
Sales (130000@ Rs 4) Rs. 520,000.00 Rs. 3.47
Variable Expenses Rs. 323,700.00 Rs. 2.16
Fixed Expenses Rs. 180,115.00 Rs. 1.20
Contribution Rs. 196,300.00 Rs. 1.31
Profit Rs. 16,185.00 Rs. 0.11
Increase in Advertising Rs. 39,715.00

A4 Volume 60000
Cost/Unit
Sales Rs. 241,400.00 Rs. 4.02
Variable Expenses Rs. 141,000.00 Rs. 2.35
Fixed Expenses Rs. 100,400.00
Contribution Rs. 100,400.00 Rs. 3.51
Profit Rs. -

A5 Cost/Unit
 Sales #REF! Rs. 4.00
Variable Expenses #REF! Rs. 2.63
Fixed Expenses Rs. 140,400.00
Contribution Rs. 160,400.00
Profit Rs. 20,000.00

4x-(2.63x+4x*.05)= Rs. 160,400.00

Volume x= 137094.02
Rs. 224,100.00

FC=C-P
C=P+FC