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Questions and Answers
Match the following concepts with their corresponding formulas in marginal costing:
Match the following concepts with their corresponding formulas in marginal costing:
Contribution = $Sales - Variable Cost$ Break Even Point (Units) = $\frac{Fixed Cost}{Contribution \text{ per unit}}$ Break Even Point (Value) = $\frac{Fixed Cost \times Sales}{Sales - Variable Cost}$ Profit-Volume Ratio (P/V Ratio) = $\frac{Sales - Variable Cost}{Sales} \times 100$
Match the following problems with their corresponding solutions:
Match the following problems with their corresponding solutions:
Additional sales required to break even = Calculate the difference between current sales and break-even sales Breakeven in units and in sales value = Calculate using the given output, selling price, variable cost, and fixed cost P/V ratio, Fixed Cost, Sales Value to earn a profit = Calculate the P/V ratio, fixed cost, and sales value to earn a specified profit using the given information Margin of Safety with changed P/V ratio = Calculate the margin of safety when the P/V ratio is changed Break-even point and turnover for specified profit = Calculate the break-even point and turnover required to earn a specified profit using the given information
Match the following terms with their definitions in marginal costing:
Match the following terms with their definitions in marginal costing:
Contribution = Sales revenue minus variable costs Break Even Point = Level of sales at which total revenue equals total costs, resulting in neither profit nor loss Margin of Safety = Excess of actual sales over the break-even sales P/V Ratio = Percentage representing the contribution to sales ratio
Match the following formulas with the concepts they represent in marginal costing:
Match the following formulas with the concepts they represent in marginal costing:
Match the following scenarios with the corresponding problems in marginal costing:
Match the following scenarios with the corresponding problems in marginal costing:
Calculate the additional sales required to break even based on the following information:
Sales Rs. 5,00,000, Fixed Rs. 2,00,000, Variable Cost Rs. 4,00,000
Calculate the additional sales required to break even based on the following information: Sales Rs. 5,00,000, Fixed Rs. 2,00,000, Variable Cost Rs. 4,00,000
Given: Sales Rs.2,00,000, Profits Rs.20,000, Variable Cost is 10% of Sales. Find (i) P/V ratio (ii) Fixed Cost (iii) Sales Value to earn a profit of Rs.80,000
Given: Sales Rs.2,00,000, Profits Rs.20,000, Variable Cost is 10% of Sales. Find (i) P/V ratio (ii) Fixed Cost (iii) Sales Value to earn a profit of Rs.80,000
Determine the breakeven in units and in sales value based on the following information:
Output 5,000 units, Selling price per unit Rs.100, Variable Cost per unit Rs.75, Total Fixed Cost Rs.25,000
Determine the breakeven in units and in sales value based on the following information: Output 5,000 units, Selling price per unit Rs.100, Variable Cost per unit Rs.75, Total Fixed Cost Rs.25,000
Find out the Margin of Safety if the P/V ratio is brought down to 1/2 based on the following information:
Contribution Rs.10,000, Fixed Cost Rs.4,000, P/V ratio 1/3
Find out the Margin of Safety if the P/V ratio is brought down to 1/2 based on the following information: Contribution Rs.10,000, Fixed Cost Rs.4,000, P/V ratio 1/3
Calculate the break-even point and the turnover required to earn a profit of Rs. X, based on the given information:
Sales Rs. X, Fixed Cost Rs. Y, Variable Cost Z% of Sales
Calculate the break-even point and the turnover required to earn a profit of Rs. X, based on the given information: Sales Rs. X, Fixed Cost Rs. Y, Variable Cost Z% of Sales
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