Reference no: EM133073984
Question - From the following information relating to Gowtham Ltd, you are required to find out
Sales price - R3. 20 per unit
Variable manufacturing cost - Rs. 11 per unit
Variable selling cost - Rs. 3 per unit
Fixed factory overheads - Rs. 5,40,000 per year
Fixed selling costs - Rs. 2,52,000 per year
Required -
(a) Calculate the Break-even point in volume and value.
(b) Calculate the Sales required to earn a profit of Rs. 60,000.
(c) Calculate Sales required to earn a profit of 10% of sales.