(b) A factory manufacturing fans has a capacity of producing 300 fans per month. Variable cost of a fan is Rs. 5000/- wh
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(b) A factory manufacturing fans has a capacity of producing 300 fans per month. Variable cost of a fan is Rs. 5000/- wh
(b) A factory manufacturing fans has a capacity of producing 300 fans per month. Variable cost of a fan is Rs. 5000/- which is sold for Rs. 6,000/- . Fixed overhead cost is Rs. 120,000/-per month. Find the following. (i) Contribution 3 marks (ii) Break-even point 3 marks 3 marks (iii) If the amount of fans sold is 90% of the capacity what would be the profit? (iv) Margin of safety in terms of Rupees and sales volumc. 3 marks Page 3 of 5
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