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Answer to Question #70695 in Accounting for Saajid
Question #70695
The sales and profit of ABC Ltd for two successive years is as follows:
Previous Year (Rs in lakhs) Current Year (Rs in lakhs)
Number of units sold 15,000 20,500
Sales 37,500 5,125
Profit/Loss 825 1,178.75
On the basis of the information given above you are required to determine:
(a) The amount of fixed costs incurred by the firm.
(b) The Break Even point for the firm (both in rupees & units).
(c) The amount of sales to earn a profit of Rs 25 crores.
(d) Margin of Safety if actual sales of ABC Ltd is 17.5 crores.
Previous Year (Rs in lakhs) Current Year (Rs in lakhs)
Number of units sold 15,000 20,500
Sales 37,500 5,125
Profit/Loss 825 1,178.75
On the basis of the information given above you are required to determine:
(a) The amount of fixed costs incurred by the firm.
(b) The Break Even point for the firm (both in rupees & units).
(c) The amount of sales to earn a profit of Rs 25 crores.
(d) Margin of Safety if actual sales of ABC Ltd is 17.5 crores.
Expert's answer
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Previous Year (Rs in lakhs) Current Year (Rs in lakhs) Number of units sold 15,000 20,500 Sales 37,500 5,125 Profit/Loss 825 1,178.75 On the basis of the information given above you are required to determine: (a) The amount of fixed costs incurred by the firm. (b) The Break Even point for the firm (both in rupees & units). (c) The amount of sales to earn a profit of Rs 25 crores. (d) Margin of Safety if actual sales of ABC Ltd is 17.5 crores.
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