IV. A Ltd. Sells its products at Rs. 40/unit. In a period if the company manufactures
and sells 12,000 units, it incurs a loss of Rs 2/unit and if the volume increase to
18,000 units, it earns a profit of Rs. 3.50/unit. The break –even point in rupees is
a. Rs. 5,70,000 b. Rs. 1,98,000
c. Rs. 5,46,207 d. Rs. 6,00,000
V. A company has a profit-volume ratio of 30%. To maintain the same contribution,
by what percentage(%) must sales be increased to offset 10% reduction in selling
price ?
a. 10 b. 20
c. 35 d. 50
IV. MJ Ltd. Has an annual fixed cost of Rs. 1,90,000. IN the year 2008-09 sales
amounted to Rs. 7,50,000 as compared with Rs. 6,00,000 in the year 2007-08
and the profit for the year 2008-09 was more than the profit for 2007-08 by Rs.
52,500.
If there is a reduction of selling price by 10% in the year 2009-10 and the company
desires to earn the same amount of profit as in 2008-09, the required sales volume
would be
a. Rs. 9,45,000
b. Rs. 5,60,000
c. Rs. 6,84,000
d. Rs. 7,55,000
V. AB Ltd. Is planning to produce a new model of calculator. The potential demand
for the next year is estimated to be 1,75,000 units. The company has the capacity
to produce 7,00,000 units and could sell 1,75,000 units at a price of Rs. 625 per
calculator. The demand would double for every decrease of Rs. 75 in the selling
price. The company expects a minimum margin of 20%.
At full capacity level, the target cost per unit will be (2)
a. Rs. 475
b. Rs. 440
c. Rs. 380
d. Rs. 500
II. Sagar Ltd. Has budgeted the factory overhead for the year 2008-09 as RS. 8,00,000
for production department – A. The factory o/h incurred during the year was
Rs. 6,84,500. During the year the company has absorbed Rs. 6,84,000 of factory
o/h on a budgeted labour hours of 50,000. The actual labour hour worked for
the year is
a. 45,000 hours
b. 42,781 hours
c. 42, 719 hours
d. 42,750 hours
III. The yield of certain process is 85%, te by-product is 10% and normal loss is 5%
of its main product. 10,000 units of materials are put in the process and its cost
is Rs. 30/unit and other expenses amounted to Rs. 25,400, 30% of which was
accounted for by power cost. It is the practice of the company that the power
cost is chargeable to the main-product and the by-product in the ratio of 5:3.
The cost of the by-product is
a. Rs. 36,309 b. Rs 38,282
c. Rs. 32,636 d. Rs. 36,712
IV. If the sales manager of a company accepts a rush order that will result in higher
than normal manufacturing cost, these additional costs are charged to the sales
manager because the authority to accept or decline the rush order was given to
the sales manager. This type of accounting system is known as
a. Responsibility accounting b. Functional accounting
c. Historical accounting d. Reciprocal allocation
V. Ram Ltd. Is currently operating at 80% capacity level. The production under
normal capacity level is 1,50,000 units. The variable cost /unit is RS. 14 and the
total fixed costs are Rs 8,00,000. If the company wants to earn a profit of RS.
4,00,000, then the price of the product /unit should be
a. Rs. 37.50 b. Rs. 38.25
c. Rs. 24.00 d. Rs. 34.50
.
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