Cost final

Page no : 2

CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 11 November 2011

haha..bilkul sahi hai sir...legal expert ? k...gud...but in income tax..not in law


anand damani (CA) (76 Points)
Replied 11 November 2011

What about Que 6C.. H and L company


CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 11 November 2011

i don't knw..guessing

for 1 h co.

for 2 l co.


Dhruv (Chartered Accountant) (308 Points)
Replied 11 November 2011

If anyone's wondering why the BEP was 514, here's why : 

 

Essentially all of us could reach the 513 solution, so am not going to go into that. So once you have reached 513 as the BEP, with a 1010 per student contribution, what's important to note is that 4 students share one vehicle and 6 students share one room, so with 513 students  - 

512 / 4 - 128 rooms are used and are completely full, the one remaining student will have to be accomodated in an extra room. Basically this means that if the room rent was 760 per room, only 1 student was paying his share for the room 760/4  = 190, this meant that some 760-190 was not being paid for by the students inspite of the fact that room was hired because just one extra student had to be accomodated. 

(I meant vehicle in the above paragraph, sorry!)

Use the same funda with the rooms now, 6 students to one room  --- 510/6 - 85 rooms, 3 students accomodated in an extra room and therefore 6-3 students not paying for the room at all. 

 

Inspite of the fact that we reached BEP with 513 students, we had to account for the extra room / vehicle cost we are paying. 

So, we add another student to the group, who's contribution helps overcome the cost, that was possible by just adding one student so the answer would come out to 514.


CA Sahil Singla.. (Service Tax ) (3746 Points)
Replied 12 November 2011

But dear Dhruv, with 514 students. no. of buses to be hired comes to 5114/6= 85.6666...so it's better to go for 516 students where no. of rooms = 516/4 = 129 & no. of buses= 516/6= 86



Dhruv (Chartered Accountant) (308 Points)
Replied 12 November 2011

Yaar it wasn't mentioned anywhere that you have to fill ALL the rooms and vehicles the students have taken, breakeven means the minimum point when costs are covered, and even though they are covered at 516, they're covered at 514 before that. 

 

516 would have been the right answer if the question said that all rooms/ vehicles have to be occupied


CA Pranjal Dhariwal (Business) (248 Points)
Replied 12 November 2011

Originally posted by : Dhruv

Yaar it wasn't mentioned anywhere that you have to fill ALL the rooms and vehicles the students have taken, breakeven means the minimum point when costs are covered, and even though they are covered at 516, they're covered at 514 before that. 

 

516 would have been the right answer if the question said that all rooms/ vehicles have to be occupied

I second Dhruv, When you are achieving profit at 514 children, why would it be 516?


Sandeep (Article) (66 Points)
Replied 20 November 2011

I have gone through solutions of both Gurukripa( /forum/details.asp?mod_id=175893&offset=1) as well as Parag Gupta Sir (/forum/details.asp?mod_id=175890&offset=1) , but I have found difference in solutions of 2-3 questions (e.g. Solutions of Question 2(b) (ii) & (iii), Question 3(a) (ii), Question 3(b), Critical paths in Quest 6(a), Question 5(a)).

 

Plz check both of them & let me know that whose solutions are correct. So whose solutions shall be followed.

 

I have also found that both of them have done several question liks Question 4(b) by different method, so please let me know whose method is simpler & hence shall be followed.



Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Join CCI Pro


Subscribe to the latest topics :

Search Forum: