Human Resources/MS-4 MBA

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Question
Hi Leo - Could you please help me getting my below question solved:

Q. An Analysis of S Ltd. cost records give the following information.
Variable Cost Fixed Cost
(% of Sales) Rs.
Direct Material 32.8% -
Direct Labour 28.4 -
Factory Overhead 12.6 1,89,000
Distribution Overhead 4.1 58,400
Administration Overhead 1.1 66,700
Budgeted sales for the next year is Rs. 18, 50,000. You are required to determine:
(a) Break even sales value
(b) Profit at the budgeted sales volume
(c) Profit if actual sales: (i) drop by 10% (ii) increase by 5% from the sale

Answer
SOLUTION:
Total variable  cost  as % of  sales
=32.8+28.4+12.6+4.1+1.1= 79% or .79
p/v ratio=1-.79=.21 or 21 %
total fixed  cost=1,89,900+58400+66700 =rs 315,000
==============================================================   

    [a]          bep=F          31,500
         ------------------------------          ¬---------------      =  RS  15,000,000
         P/V ratio          0.21
=============================================================================
[b]  profit=budgeted contribution- fixed cost
=budgeted sales   x p/v ratio –fixed cost
=18,50,000x .21-315,000==rs 73,500
=========================  
[c] [1]revised sale after 10%drop= 18,500,000x 90/100= rs  16,65,000
Profit = 16,65,000x.21-315,000=rs 34,650


[c] [2]revised sale after    5 % increase= 18,500,000x 105 /100= rs  19,42,000
Profit = 19,42,000x.21-315,000=rs 92,925
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Leo Lingham

Expertise

human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment, selection, performance management.

Experience

18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development

PLUS

24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc

Organizations
Principal---BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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