We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.

www.vustudents.ning.com

 www.bit.ly/vucodes + Link For Assignments, GDBs & Online Quizzes Solution www.bit.ly/papersvu + Link For Past Papers, Solved MCQs, Short Notes & More

Looking For Something at Site? Search Below

# GDB last date 20/07/17

Case:

Global Company manufactures and sells two products, product A and product B. The total monthly fixed expenses of the company are Rs.480,000. Sales price per unit of product A and product B is Rs.100 and Rs.200 and variable cost per unit is Rs.50 and Rs.80 respectively. Global’s management has set the goal to achieve the sales revenue of Rs.2,600,000 in the following month. To achieve this target, following alternatives are available to the company:

1. To sell 8,000 units of product A and 9,000 units of product B
2. To sell 16,000 units of product A and 5,000 units of product B

Required:

1. Calculate break-even point (in rupees) if Company chooses to opt alternative (i).
2. Calculate break-even point (in rupees) if Company chooses to opt alternative (ii).
3. Decide on the basis of net operating income that which alternative is better for the company. (mention the calculated figures of net operating income under both alternatives)
4. Briefly discuss the reason of change in break-even point (in rupees) under both alternatives.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

Views: 2134

### Replies to This Discussion

start discussion over here guys

ap ne solve kr li

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

Note:-

For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.

For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.

&

.... How to Find Your Subject Study Group & Join ....

cm ratio a awr b main 0.5 and .6 ati hai dono apotion main same hogi correct me please if I am wrong

and please check the target profit calculation also

 Fixed Cost 480,000.00 480,000.00 Target Profit 2,600,000.00 2,600,000.00 Product A CM Ratio 0.50 0.6 Sale To Earn Target Profit 5,680,000.00 4,813,333.33

Its wrong dear.

Fixed cost / by CS Ratio= 480000/.50 = 960,000

Target Profit ka Formula Kia hai

Syed sajjad how you calculate CS Ratio 0.5 please tell the procedure?

1. Calculate break-even point (in rupees) if Company chooses to opt alternative (i).

843243.24 rupees

1. Calculate break-even point (in rupees) if Company chooses to opt alternative (ii).

891428.57 rupees

1. Decide on the basis of net operating income that which alternative is better for the company. (mention the calculated figures of net operating income under both alternatives)

Ans:     case (i) is better than case (ii) as it has high profit.

(i)                  1,000,000 rupees

(ii)                920,000 rupees

1. Briefly discuss the reason of change in break-even point (in rupees) under both alternatives.

As products of variable cost in both cases are different, so contribution margin also changes.

how to calculate

to find profit, see page-185 Q.2.

then by the help of these data
find break even sale is rupees formula on page 185.

may be u can get the answer.
hope u understand

thanks dear

Q.3 how to calculate net operating income

## Latest Activity

amina, Arsalan khan, Muhaamad Rizwan and 24 more joined Virtual University of Pakistan
14 minutes ago
Kinzar iman (ˈinəsənt) liked Miss. Churhail's profile
29 minutes ago
38 minutes ago
39 minutes ago
39 minutes ago
Kamal Qaisar posted discussions
1 hour ago
Junaid [MAF] joined +M.Tariq Malik's group

### ECO401 Economics

1 hour ago
Junaid [MAF] updated their profile
1 hour ago
1 hour ago
Blessings posted a status
"Tu jo hr roz nye hussn pe mr jata hai........................tu btaye ga mujhe ishq hai kya"
1 hour ago
2 hours ago
2 hours ago
2 hours ago
2 hours ago
3 hours ago
3 hours ago

1

2

3

4

5