(b) A factory manufacturing fans has a capacity of producing 300 fans per month. Variable cost of a fan is Rs. 5000/- wh
Posted: Thu Apr 28, 2022 2:27 pm
(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