Reference no: EM132796486
A Company annually manufactures and sells 20,000 units of product, the selling price of which is Rs.50/- and profit earned is Rs. 10 per unit. The analysis of cost of 20,000 units is:
Material cost Rs. 3,00,000
Labour Cost Rs. 1,00,000 Overheads (50% variable) Rs. 4,00,000
Problem 1: You are required to compute:
a) Bread-even Sales in units and in Rupees
b) Sales to earn a profit of Rs. 3,00,000/-
c) Profit when 15,000 units are sold.
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