Assignment # 02
Cost & Management Accounting (MGT402)
SEMESTER FALL 2015
ASSIGNMENT # 02
DUE DATE: 08th February, 2016
MARKS: 10 TOPIC
TO BE TESTED:
To understand Breakeven Analysis in terms of units, rupees and in terms of target profit. ASSIGNMENT QUESTION:
Mr. Aslam is manufacturing different home appliances including micro wave ovens in his production unit. These are information about costs and selling price of microwave oven for the month of December 2015.
Description Cost (Rs. Per unit)
Selling price 2950
Cost of raw material 800
Cost of casting process 200
Cost of milling & grinding 400
Cost of polishing 300
Cost of packaging 150
Mr. Aslam also incur Salaries of workers, factory rent and other fixed costs Rs , 1.2, 1.6 and 0.4 million respectively during the month.
Required: Based on the above information of Mr. Aslam’s business, you are required to calculate:
1. Breakeven Point in unit of “microwave ovens” and in rupees for the period. (04 marks)
2. Amount of sales for Target Profit of Rs 1.2 million (02marks)
3. At present, production unit is selling 3,000 microwave ovens per month. Marketing department is convinced that a 16% reduction in the selling price will result in a 30 % increase in the number of microwave oven sold each month. What will be impact on Net Operating Income at present plan and proposed plan by marketing department? Is this change is suitable for production unit? (04 marks)
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discuss your problems guys
Koi to hint milay k ksy ho ge assignment
break-even point or break-even analysis is contribution margin. In equation format it is defined as follows:
Contribution Margin = Revenues- variable expenses
The contribution margin for one unit of product or one unit of service is defined as:
Contribution Margin = Revenues per unit- variable expenses per unit
The break-even point in units
break-even point in units=Fixed Expenses per month + contribution margin per unit
Friends, my answers are as under:
BE sales in units = 2909 units
BE sales in Rs. = Rs. 8.579 Mn
Amount of sales in unit to earn Rs. 1.2Mn = 4000 Units
Net operating Income effect
Profit with present plan = 100,000
Profit with proposed plan = 914,200
Net effect = 814,000
Check through ur own calculations and confirm, plz
Yeh na pochna ke ye kaisey solve kiya hey. Hahahahahaha
hahah plxx explain !!
#Shakeel bro Good work
plz thora Explain to kr dain kindly
just aap formulas confirm krwadain calculations hum khud krlaingy
Breakeven sales in units = Fixed Costs / Contribution Margin
Breakeven Sales in Rupees= Fixed Costs / C/S Ratio
C/S Ratio = Contribution Margin (CM) in Rs / Sales in Rs
Amount of sales = Target CM / CM per Unit
Target CM = Target Profit + Fixed Costs
Amount of sales for Target Profit of Rs 1.2 million
Targeted Profit = 1200000
Add Fixed Cost = 3200000
Contribution Margin = 4400000
Add Variable Cost = 5550000
Sale = 9950000
At target profit 1.2 million sales in units are 4000 units and sales in Rupees is 11800000
shakeel bhai aap just formulas betadain calculations hum khud krlaingy
deaqr shakeel sb,
i,m completely busy in my job.dear my job is so tide and very long time duty, so due to short time i,m not give completely time to the study.i,m very worried from this that my all assignment are miss already .my requested to u that if u have a complete answer of this assignment please send me in my personal idd. my gmail idd is email@example.com