Management accounting
Variable cost per unit is given as 12
Sales in units is given as 50,000 units
Return on capital employed is 20%
Capital employed is 12 lakh on fixed assets and 50% on sales value.Fixed cost is given as Rs.5,10,000
Has been asked to determine the selling price per unit for a desired profit of 20% on capital employed?
Would i have the solution please?
let the sales price be x
Capital employed = 12,00,000 + 50 % of (50,000*x)
profit = 2,40,000 + 5,000 x
the price of one unit = (variable cost + fixed cost + profit)/50,000
price per unit = [6,00,000+12,00,000+2,40,000+ 5,000x]/50,000
=[20,40,000 + 5,000 x]/50,000
x = 40.80 + .1 x
.9 x =40.8
x = 45.33
The Sales value will be
50,000 units * 45.33 = 22,66,500
= 12,00,000+ 11,33,250
=23,33,250
= 20 % of 23,33,250
i.e. 4,66,650
profit = sales value -variable cost - fixed cost
=22,66,500- (12* 50,000) - 12,00,000
= 4,66,500
hence checked any doubt plzz aSK
Click here to login now
Similar Resolved Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Form 144 TDS Return Validation Error – Mandatory Fields
- LLP audit and disclosure
- Rent agreement of House of deceased person
- Form 144 TDS Return Validation error
- TDS- 2026-27 Q1 Correction
- GSTR9 Annual Return
- Applicability of tax on invoice
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
