Cost volume and profit Analysis or Break-Even point

Rs
Selling price per unit
100
Manufacturing cost
Variable Cost per unit
RAW Material
LABOR
Factory over heads

Rs

Contribution
Sales -Variable cost
Fixed Manufacturing Cost
Non-Manufacturing fixed cost
Fixed Cost
Budgeted units to be Sold
a
b
c
d

30
20
10
70
30
200000
100000
300000
15000

Break -even point in units & in rupees/sales

Margin of safety
Margin of safety Ratio
calculate no of units to be manufactured and sold if business wants to

Break -even point in units & rupees /sales

Break -even point in units
Break-even point

Fixed cost/contribution per unit

Contribution

sales-variable cost

Break -even point in rupees /sales

Contribution to sales ratio

contribution/sales *100

Break-even point sales

Fixed cost/Contribution to sales ratio

Margin of safety

Total sale in unit - Break even point

Margin of safety ratio

Total sale in unit -Break even point/ Tota

No of units

fixed cost + Desired profit / Contribution

d if business wants to earn a profit level of Rs 600000

d

600000
Selling price increased 40%
40
100
Variable and Manufacturing cost incresed 15 %
10.5
70
Conribution
New break-even point
Fixed cost/contribution
NEW
Contribution to sales ratio
contribution/sales *100
NEW
Break-even point sales
Fixed cost/Contribution to sales ratio

300000/30

10000

100-70

/sales *100

30

30/100*100

30%

ontribution to sales ratio

300000/30%

unit - Break even point

15000-10000

1000000
5000

unit -Break even point/ Total sale *100

15000-10000/15000*100

Desired profit / Contribution per unit

300000+600000/30

ontribution

/sales *100

140
80.5
59.5
5042.017
59.5/140*100

ontribution to sales ratio

4250%

300000/4250%

7058.824

30000

33.33333

Selling price per unit

Manufacturing costs
Variable Cost per unit
RAW Material
LABOR
Variable over heads
Selling and admin Expenses

635
Rs
150
115
65
55
385

Contribution
250
Sales -Variable cost
Fixed Manufacturing Cost
4000000
Non-Manufacturing fixed cost(selling cost)
2500000
Non-Manufacturing fixed cost(administration cost) 1000000
8E+006
Fixed Cost
1875000

Budgeted units to be Sold

40000
1 Budgeted Profit for the next year
2 Break -even point in units & in rupees/sales
3 Margin of safety
4 Margin of safety Ratio
5 calculate no of units to be manufactured and sold if business wants to earn a pro
6 Variable cost increased by 20% and all fixed cost increased by 25%
7 on account of increase in costs in (6) business has decided to increase it's budge
Budgeted Profit for the next year
Total sales in the next year
40000*635
Total sales in the year
40000*385
Less fixed cost

Break-even point

7500000
Break -even point in units
Fixed cost/contribution per unit

Break -even point in rupees /sales

Contribution to sales ratio

contribution/sales *100

Break-even point sales

Fixed cost/Contribution to sales ratio

Margin of safety

Total sale in unit - Break even point

Margin of safety ratio

Total sale in unit -Break even point/ Tota

No of units

fixed cost + Desired profit / Contribution

Selling price increased 20%

Variable and Manufacturing cost incresed 25 %
Conribution
New break-even point
NEW
Margin of safety
NEW
Margin of safety Ratio

77
1875000

385
7500000

Fixed cost/contribution
Total sale in unit - Break even point

Total sale in unit -Break even point/ Tota

ness wants to earn a profit level of Rs 6500000

6500000
sed by 25%
ed to increase it's budgeted sales to 55000 units calculate new Margin of safety

25400000
15400000
10000000
7500000
2500000

/sales *100

750000/250

30000

250/635*100

3937%

ontribution to sales ratio

750000/39%

unit - Break even point

40000-30000

39%
19230769.23
10000

unit -Break even point/ Total sale *100

40000-30000/40000*100

Desired profit / Contribution per unit

7500000+6500000/250

ontribution

462
9375000
173
54190.75

unit - Break even point

809.2486

unit -Break even point/ Total sale *100

1.471361

25
56000