How to find variable cost?

hehe (none) (97 Points)

18 June 2013

Given: Profit = Rs.12000, Fixed Cost = 24000, Margin of Safety = 30000.

Asked to findout new Break Even Point if selling price is reduced by 10%.

So, to findout BEP we need variable cost. Can someone tell me how to get it?

Reply
Follow
Share

3 Replies

gillbates (student) (277 Points)
Replied 18 June 2013

what is the units sold ?

Variable cost at present level of activity :54000

now it is easy to find

1 Like

hehe (none) (97 Points)
Replied 18 June 2013

Thanks gillbates.

Could also please tell me the proceedure you used to find that?

BTW, how to findout the Variable Cost from this details: Fixed Costs = Rs. 4000, BEP = Rs. 10000.

gillbates (student) (277 Points)
Replied 20 June 2013

Variable Cost = 6000

Hint : At BEP, Fixed cost = Contribution

so cont. =4000

then Calculate PVR, for finding Sales

which is 40%

Sales=10000

Start a New Discussion