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Compute the profit on projected sales

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Reference no: EM132714297

Question - The production budget of XYZ company for the coming year is presented below:

Sales units 30000

Add: ending stock 10000

Total requirements 40000

Less: Beginning stock 15000

Production units 25000

Additional information:

Estimated fixed cost for the coming year Rs. 300000

SPPU Rs. 40

VCPU of the beginning stock Rs. 25

Variable cost of production Rs. 30 per unit

Required -

1. Compute the BEP in units?

2. Compute the Profit on projected sales?

3. Compute the Required sales units for earning Rs. 50000 profit?

Reference no: EM132714297

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