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Bep 2024

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Bep 2024

Uploaded by

gururaj.linkedin
Copyright
© © All Rights Reserved
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You are on page 1/ 10

Q11

(a) BEP
FC/SP-VC

(b) Profit = SP-VC * SALES - FC


X = (50-40) * 30000-200000 = 100000
Y = (50-35) * 20000- 300000 = 0

(c) Cash BEP


FC-DEP./CONTRIBUTION

BEP as a whole = Complete FC/


(d) Complete Contribution

Weighted avg cont. margin = 10*30000


(e) + 15*20000 / 30000+20000 = 12

(f) New sales mix = 50000*2/5= 20000 of X


50000*3/5= 30000 of Y

Contribution
LESS - FC
Profit

Increase in profit = 150000-100000 = 50000

CAPACITY OF MERGED PLANT FOR BEV


Q10 PURPOSE

SALES
VC
FC

Contribution = (Sales at 100% - VC at 100%)


BEP = FC / CONTRIBUTION Margin Ratio
(cont. m ratio = 130/500 = 0.26)

PROFIT AT 75% WC (in Lacs)


SALES at 75% = (500/100*75)
VC at 75% = (370/100*75)
Contribition at 75% = (130/100*75)
Total FC
Profit = Contr. - TFC = (97.5 - 60)
Q8 Product
A
B
C

WEIGHTED AVERAGE CONT. = ( Cont.A+Sales


mix A) + ( Cont.B + S.B) + (Cont. C + S.C)
(a). OVERALL BE SALES (unit) = TFC/WAC

(b). BE SALE FOR INDIVIDUAL PRODUCTS


A
B
C

OVERALL P/V RATIO (Total cont./Total


(c). sales)
Total Cont. = 24000*20.5 = 492000
Total sales = 600000+216000+96000=
812000

Q7 (a). PRODUCT
A
B
C
Total Cont.(CM a* Sales a) + (CM b*Sales
b) + (CM c* Sales c) =
10*0.4+10*0.35+8*0.25 = 9.5
PV RATIO = TC/TS = 9.5/20 = 0.475 /
47.5%
BE SALE = TFC/PV ratio = 110000/0.475
= 231579

(b). SP = 25, VC = 12.50 , CONT.(SP-VC) = 12.5


PRODUCT
A
B
D
TOTAL CONT.= (10*0.50) + (10*0.30) +
(12.50*0.20) = 10.5
NEW PV RATIO = 10.5/20 = 0.525 / 52.5%
NEW FC = 110000+31000 = 141000
NEW BE SALE = New TFC/ New PV ratio
= 141000/0.525 = 268571
(c). The management's decision to substitute product C with product D is justified fo

Higher Contribution Margin: Product D has a higher contribution margin (Rs. 12.5

Break-even Point: Although the new break-even sales (Rs. 2,68,571) are higher t

Improved Sales Mix: The new sales mix (50% A, 30% B, 20% D) aligns better with

Profitability Monitoring: With increased fixed costs (Rs. 31,000) and stable total

In conclusion, replacing product C with product D is a strategic move that may le


X Y
200000/50-40 300000/50-35
20000 20000

So, X>Y

X Y
200000-40000/10 300000-30000/15
16,000 18000

200000+300000/10*3/5 + 15*2/5 500000/6+6 = 41667

BEP = 500000/12 = 41667

Complete Contrib. = 10*2/5+15*3/5


4+9 = 13
existing mix new mix
50000*12= 600000 50000*13=650000
500000 500000
100000 150000

Consequence on BEP = Comp. FC/Comp. Cont


500000/13 = 38462

Factory A (100%) Factory B (60%) Fac.B (100%)


300 120 120/60*100 = 200
220 90 90/60*100 = 150
40 20 20

375
277.5
97.5
60
37.5
SP VC RATIO % VC(SP*VC RATIO)
50 40 50*0.4 = 20
30 50 30*0.5= 15
20 75 20*0.75 = 15

30*0.5 + 15*0.3 + 5*0.2 = 20.5


492000/20.5 = 24000 units

Units Value (RS.)


24000*0.5 = 12000 12000*50= 600000
24000*0.3 = 7200 7200*30= 216000
24000*0.2 = 4800 4800*20= 96000

492000/812000 = 0.605 / 60.5%

SP VC SALES MIX (%)


20 10 40
25 15 35
20 12 25

CONT. MARGIN NEW SALES MIX (%) New BES for each
10 50 268571*0.50= 134286
10 30 268571*0.30= 80572
12.5 20 268571*0.20= 53714

5 / 52.5%
ubstitute product C with product D is justified for the following reasons:

duct D has a higher contribution margin (Rs. 12.50) compared to product C (Rs. 8), enhancing the o

new break-even sales (Rs. 2,68,571) are higher than the previous break-even sales (Rs. 2,31,579), t

es mix (50% A, 30% B, 20% D) aligns better with market preferences, potentially optimizing revenu

reased fixed costs (Rs. 31,000) and stable total sales, the company should closely track the perform

C with product D is a strategic move that may lead to improved financial outcomes, provided that t
GURURAJ S. TALWAR
222132 ( CA2)

MERGED (A+B)
500
370
60

500-370 = 130
60/0.26 = 230.77 Lac
CONT. MARGIN(SP-VC)
50-20 = 30
30-15 = 15
20 - 15 = 5

CONT. MARGIN(SP-VC) BE SALE for each


10 231579*0.4 = 92632
10 231579*0.35 = 81053
8 231579*0.25 = 57895
, enhancing the overall profitability per unit sold.

s (Rs. 2,31,579), the increased contribution from product D can offset this increase.

optimizing revenue generation.

y track the performance of product D to ensure it meets profitability targets.

s, provided that the market response is favorable and profitability is carefully monitored.
increase.

ully monitored.

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