EXAMPLE 1.1 Alpha Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find(a) The break-even sales quantity,(b) The break-even sales(c) If the actual production quantity is 60,000, find (i) contribution; and(ii) margin of safety by all methods.

Answered: EXAMPLE 1.1 Alpha Associates has the…

EXAMPLE 1.1 Alpha Associates has the following details: Fixed cost = Rs. 20,00,000 Variable cost per unit = Rs. 100 Selling price per unit = Rs. 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

EXAMPLE 1.1 Alpha Associates has the following details:
Fixed cost = Rs. 20,00,000
Variable cost per unit = Rs. 100
Selling price per unit = Rs. 200
Find
(a) The break-even sales quantity,
(b) The break-even sales
(c) If the actual production quantity is 60,000, find (i) contribution; and
(ii) margin of safety by all methods.

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