BEP Problems

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Deltron co break even analysis

Particulars AMT A) BEP


Selling price /unit 70500 Total fc/contribution
62857.142857
direct material/unit 62858
A/c 12250
Heater 3550 B) 100x
LED bulb 200 x
Direct labour/unit 100x
A/c 1250
Heater 550 C) 7000000000
LED bulb 50
Direct manufacturing cost 24900 Return on revenue
direct marketing & distribution cost/ unit 1500
Variable cost / unit 44250
Contribution 26250 26250 D) Margin of safety
Total fixed cost
Annual fixed cost 1200000000
Intrest on capital 450000000 450000000
Total fixed cost 1650000000
PV ratio 0.37234043

e)

f) slaes to earn a profit of 2.5 billion

total fc +250cr/0.37234

1 cost sheet 10marks


2 ABC 15marks
3 BEP 12marks
4 8marks
al fc/contribution Break even sales
4431428571.43
units 4431428571.43

1650000000+12x)/0.37234
-65387968.61
-6538796861.38

(1650000000+x)/0.37234
#NAME? (956382978.72 )
urn on revenue
-13.66%

rgin of safety Actual sales - break even sales

100x (1650000000+14x)/0.37234
x 71016613.58
100x 7101661358.35

Margin of safety 2670232786.93

es to earn a profit of 2.5 billion

al fc +250cr/0.37234

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