Marginal Cost Accounting Lecture | T.Y.B.Com and M.com Marginal Cost and Absorption Cost Lecture - Mumbai University Idol
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Marginal Cost Accounting Lecture | T.Y.B.Com and M.com Marginal Cost and Absorption Cost Lecture

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Marginal Cost Accounting Lecture | T.Y.B.Com and M.com Marginal Cost and Absorption Cost Lecture

 

 Illustration 1 
1) From the following data, calculate Break-even Point ( B∈P) 
Selling Price Per Unit `40/- 
Variable Cost Per Unit `30/- 
Fixed overheads `40,000. 

If sales are 20% above B∈P , calculate the net profit.
 
ANS: 
 

 

1) P/V Ratio = Contribution X 100 
                                Sales
    p/v ratio = 10 x 100
              40
                  = 25%
 
2) B P ∈ (in `) = Fixed Overheads 
                    PV Ratio 
                        = 40000
                             25%
                        = 160000
  • If sales are 20% above B∈P , calculate the net profit.
BEP = 160000 + 32000 (20%) = 192000

 

If  You Want This Illustration 1 Lecture Video Than Click Here

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