66 Fixed Cost Rs 2 50 000 Variable Cost Rs Rs The break even calculator uses the following formulas: q = f (p − v) , or break even point (q) = fixed cost (unit price − variable unit cost) where: q is the break even quantity, f is the total fixed costs, p is the selling price per unit, v is the variable cost per unit. total variable cost = expected unit sales × variable unit cost. Rs 50 x = rs 30, 00,000 . x = rs 30, 00,000 ÷ 50 . x = 60,000 units . it can be noticed in the above equation that rs 30, 00,000 fixed costs are being divided by contribution margin per unit rs 50 (rs 125 – rs 75). this break even equation, in fact, is in the form of following formula which is generally used to find out break even point in.
Solved Q4 A Firm Has Sales Of rs 75 00 000 variable cost Chegg
Solved Q4 A Firm Has Sales Of Rs 75 00 000 Variable Cost Chegg Variable costs per unit: rs. 400 sale price per unit: rs. 600 desired profits: rs. 4,00,000 total fixed costs: rs. 10,00,000 first we need to calculate the break even point per unit, so we will divide the rs.10,00,000 of fixed costs by the rs. 200 which is the contribution per unit (rs. 600 – rs. 200). Margin of safety = total sales – sales at break even point. say, actual present sales are rs. 5,00,000 and the break even sales are rs. 4,00,000, then margin of safety is equal to rs. 1,00,000, i.e., 5,00,000 – 4,00,000. margin of safety can also be expressed in percentage. If the selling price is rs. 100, now it is reduced by 10%, i.e., it will be rs. 90 (100 — 10) variable cost new p v ratio new break even point new break even point illustration: 6 rs. 60 per unit selling price — variable cost x selling price 90 60 x 100 = 33.33% fixed cost new p v ratio 8,000 = rs. 24,002.40 33.33% = rs. 24,002.40 mnp. Actual production and sales – 50% of the capacity selling price ₹20 per unit variable cost ₹10 per unit fixed cost: under situation i ₹ 4,000 under situation ii ₹ 5,000 capital structure: financial plan a (₹)b (equity 5,000 15,000 debt (rate of interest 10%) 15,000 5,000 20,000 20,000 (m ii – oct 12) solution :.