BES using LIFO or FIFI

BES and sales to earn profit

BES in multiple products
Pricing
A ltd purchases M as and when it is available
in the market and sells the same to
government enterprise at Rs. 20 per unit.

At present following stock is available in the

godown
18 November: 4000 units @ 12
23 November: 5000 units @ 15

Monthly fixed expenses = 50,000

Find the following

a) Break even point
Selling Price per unit 45
Variable cost
Direct Materials 11
Direct Labour 5
Manufacturing overheads 7
Selling Expenses 2
Quarterly Fixed Costs
Manufacturing overheads 250000
Selling and Admin 350000

1.       What is A break even point in units?

2.       What is the breakeven point in sales?
3.       How many units has to be sold to earn 500,000
4.       What is the firms margin of safety
5. Find revised BES if the total Selling overhead is converted to variable as 12 per unit       
 Fixed Cost is Traceable to products Fixed Cost is Not Traceable to products
500 300 200 500 300
A B C A B
SP 300 200 100 SP 300 200
VC 150 110 70 VC 150 110
FC 23200 15000 5000 43200 Fixed Cost
t Traceable to products
200
C
100
70
43200
Additional Order_Accept or Reject
Capacity Operation 40%
units 1000
Direct Material 20
Direct Labour 50
Manufacturing Overhead
Fixed 80
Variable 30
Totlal Cost 180
SP 200

Additional Order
quantity 600
Price 125

new capactity to be created 30000

Capacity Operation 100%

units 1000
Direct Material 20
Direct Labour 50
Manufacturing Overhead
Fixed 80 80000
Variable 30
Totlal Cost 180
Sales 200

Additional Order
quantity 600
Price 125