www.vustudents.ning.com

# COST AND MANAGEMENT ACCOUNTING (MGT402) ASSIGNMENT NO. 02

ABC Company manufactures and sells 80 units of product “Milk chocolate” at Rs. 150 per unit. Following costs
are incurred to manufacture the product.

 Particulars Rs (per unit) Direct material 20 Direct labor 15 Variable factory overhead 25

Requirement:
1. Calculate the contribution margin per unit. Marks 2
2. Calculate breakeven sales in terms of units. Marks 3
3. Prepare an income statement by considering the new effects i.e., decrease in sales price by 10% and increase in sales
volume by 5%. Fixed costs of Rs. 3,060 incurred on this operation.
Marks 5

Views: 324

# *****

Share the Assignment Questions & Discuss Here....

Stay touched with this discussion, Solution idea will be uploaded as soon as possible in replies here before the due date.

MGT402 Assignment 2 Fall 2020 Solution idea:

1. Calculate the contribution margin per unit.

Contribution margin par unit = Sales less variable costs of sales

Contribution margin par unit = 80-(20+15+25)

Contribution margin par unit =20

2. Calculate breakeven sales in terms of units

breakeven sales in terms of units = FC/Contribution margin per unit

breakeven sales in terms of units = 3660/20

breakeven sales in terms of units = 153

## decrease in sales price by 10% and increase in sales volume by 5%

 TOTAL 11340 SALE (80+(80*5/100)84 5040 LESS VARIABLE COST (20+15+25)*84 5040 CONTRIBUTION 6300 FIXED COST 3060 NET PROFIT 3240 PER UNIT 150-(150*10/100)135

MGT402_Assignment_No_02_Solution_Fall_2020

Click on the below link to download the file

MGT402_Assignment_No_02_Solution_Fall_2020

Answer 1

Contribution margin per unit= 150-20-15-25=R s.90

Answer 2

Breakeven sales in terms of units= 3060/90=34

Answer 3

Income statement

Sales (135*84)       =R s.11340

variable cost(60*84)=R s.5040

contribution margin=R s.6300

Fixed cost            =R s.3060

Net Profit             =R s.3240

1

2

3

4

5

## Latest Activity

Kinz@ MuGhaL joined + M.Tariq Malik's group

### ISL201 Islamic Studies

3 hours ago
Kinz@ MuGhaL joined + M.Tariq Malik's group

### ENG506 World Englishes

3 hours ago
Kinz@ MuGhaL joined + M.Tariq Malik's group

### ENG503 Introduction to English Language Teaching

3 hours ago
Kinz@ MuGhaL joined + M.Tariq Malik's group

### ENG201 Business and Technical English Writing

3 hours ago
+!!★彡 "Royal girl"彡★✓ updated their profile
3 hours ago
+!!★彡 "Royal girl"彡★✓ and + IFRAH ANSAR are now friends
5 hours ago
+ IFRAH ANSAR liked Kamboh (Graphic Designer)'s discussion *نظام محبت*
5 hours ago
6 hours ago

© 2021   Created by + M.Tariq Malik.   Powered by