01 October 2011
a pen manufacturer desired to manufacture three models of pen as super model deluxe model and basic model.He wants to fix the price of Rs.20 for super model, Rs.15 for delux model and Rs.10 for basic model. He plans to allow 25% discount to wholesaler and retailer. The estimated fixed cost would be Rs.75,000 and the variable cost per unit comes to Rs.5. i) it has been asked to find out the break-even point for each type of pen and also to fin out the number of pens to be sold by the manufacturer in order to make a profit of Rs.25,000
03 October 2011
The variable cost pre units for the three kind of pen are Rs 5 each. Therefore contribution per unit will be Super 10 deluxe 6.25 basic 2.5
03 October 2011
Thanks for giving solution for the 1st part, actually i need solution for the second part i.e., in order to earn a profit of Rs. 25,000, how many number of pens should be sold by the manufacturer
11 October 2011
Thanks for giving solution for the 1st part, actually i need solution for the second part i.e., in order to earn a profit of Rs. 25,000, how many number of pens should be sold by the manufacturer
11 October 2011
On the same line the sales in units will be 16,000 deluxe pens and 40,000 basic pens to eqarn the desired profit of Rs 25,000 in each class of pen
14 October 2011
Thank you very much.What i thought is we have to find the number of pens of each kind to be produced in order to earn a total profit of Rs.25,000/- i.e.,total of Super version+deluxe version + basic version)= Rs. 25,000 profit
15 October 2011
well in that case, u requires the sales mix, without sales mix u r not able to calculate the quantity of different articles with different P/V ratio
CAclubindia
