fixed cost =95000
year sales profit
2009 500000 40000
2010 700000 65000
with the above information can we find out the break even point in units how can we calculate
i can calculate in rs. can anyone tell me how can we calculate in points?
6 Replies
MD. RAFI
(Manager Accounts (future CA))
(670 Points)
Replied 01 January 2013
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correct me if i am wrong.
(Guest)
hello devi,
A) DIFFERENCE IN SALES YEAR 2009 & 2010 = RS 2,00,000/- (7,00,000 - 5,00,000)
B) DIFFERENCE IN PROFIT YEAR 2009 & 2010 = RS 25,000/- (65,000 - 40,000)
C)THEREFORE PROFIT PER UNIT = 2,00,000 / 25,000 = RS 8.00 PER UNIT.
D) NO.OF UNITS FOR THE YEAR 2009 BASED ON PROFIT = 40000/ 8 P.UNIT = 5,000/- UNITS.
E) NO.OF UNITS FOR THE YEAR 2010 BASED ON PROFIT = 65000/ 8 P.UNIT = 8,125/- UNITS.
CONCLUSION;
1) NO.OF UNITS FOR THE YEAR 2009 FOR BREAK EVEN POINT = FIXED COST/ CONTRIBUTION P.UNIT
i.e 95,000/ 27 PER UNIT = 3,518.52 UNITS ( RS 8 PROFIT P.UNIT + RS 19.0 FIXED COST P.UNIT i.e,,
95,000/ 5000units = 19.00)
2) NO.OF UNITS FOR THE YEAR 2010 FOR BREAK EVEN POINT = 95000/ 19.70 P.UNIT = 4,822.33/- UNITS.
i.e RS 8 PROFIT P.UNIT + 11.70 FIXED COST P.UNIT I.E 95000/ 8125 UNITS = 11.70)
MD. RAFI
(Manager Accounts (future CA))
(670 Points)
Replied 02 January 2013
Gr8 job gvgr123, keep it up!
U don't have any friends in cci, I have send request, pl accept.
MD. RAFI
(Manager Accounts (future CA))
(670 Points)
Replied 04 January 2013
@ gvgr123
I have not dishearted by your words, I always think positive.
Anyway thanks for your reply.
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