Cost volume and profit Analysis or Break-Even pointRs

Selling price per unit 100

Manufacturing costVariable Cost per unit RsRAW Material 30LABOR 20Factory over heads 10

70Contribution 30Sales -Variable costFixed Manufacturing Cost 200000Non-Manufacturing fixed cost 100000Fixed Cost 300000Budgeted units to be Sold 15000

a Break -even point in units & in rupees/salesb Margin of safetyc Margin of safety Ratiod calculate no of units to be manufactured and sold if business wants to earn a profit level of Rs 600000

Break -even point in units & rupees /salesa 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

b Margin of safety Total sale in unit - Break even point

b Margin of safety ratio Total sale in unit -Break even point/ Total sale *100

c No of units fixed cost + Desired profit / Contribution per unit

calculate no of units to be manufactured and sold if business wants to earn a profit level of Rs 600000600000

d Selling price increased 40% 40 100Variable and Manufacturing cost incresed 15 % 10.5 70

ConributionNew break-even point Fixed cost/contributionNEWContribution to sales ratio contribution/sales *100NEWBreak-even point sales Fixed cost/Contribution to sales ratio

300000/30 10000

100-70 30

contribution/sales *100 30/100*100 30%

Fixed cost/Contribution to sales ratio 300000/30% 1000000

Total sale in unit - Break even point 15000-10000 5000

Total sale in unit -Break even point/ Total sale *100 15000-10000/15000*100 33.33333

fixed cost + Desired profit / Contribution per unit 300000+600000/30 30000

14080.559.5

Fixed cost/contribution 5042.017

contribution/sales *100 59.5/140*100 4250%

Fixed cost/Contribution to sales ratio 300000/4250% 7058.824

Selling price per unit 635Manufacturing costsVariable Cost per unit RsRAW Material 150LABOR 115Variable over heads 65Selling and admin Expenses 55

385Contribution Sales -Variable cost 250Fixed Manufacturing Cost 4000000Non-Manufacturing fixed cost(selling cost) 2500000Non-Manufacturing fixed cost(administration cost) 1000000Fixed Cost 8E+006

1875000

Budgeted units to be Sold 400001 Budgeted Profit for the next year2 Break -even point in units & in rupees/sales3 Margin of safety4 Margin of safety Ratio5 calculate no of units to be manufactured and sold if business wants to earn a profit level of Rs 65000006 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 budgeted sales to 55000 units calculate new Margin of safety

Budgeted Profit for the next yearTotal sales in the next year 40000*635Total sales in the year 40000*385

Less fixed cost 7500000

Break -even point in units Break-even point 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/ Total sale *100

No of units fixed cost + Desired profit / Contribution per unit

Selling price increased 20% 77 385Variable and Manufacturing cost incresed 25 % 1875000 7500000

ConributionNew break-even point Fixed cost/contributionNEWMargin of safety Total sale in unit - Break even point NEWMargin of safety Ratio Total sale in unit -Break even point/ Total sale *100

calculate no of units to be manufactured and sold if business wants to earn a profit level of Rs 6500000 6500000Variable cost increased by 20% and all fixed cost increased by 25%on account of increase in costs in (6) business has decided to increase it's budgeted sales to 55000 units calculate new Margin of safety

254000001540000010000000

75000002500000

750000/250 30000

contribution/sales *100 250/635*100 3937% 39%

Fixed cost/Contribution to sales ratio 750000/39% 19230769.23

Total sale in unit - Break even point 40000-30000 10000

Total sale in unit -Break even point/ Total sale *100 40000-30000/40000*100 25

fixed cost + Desired profit / Contribution per unit 7500000+6500000/250 56000

4629375000

173Fixed cost/contribution 54190.75

Total sale in unit - Break even point 809.2486

Total sale in unit -Break even point/ Total sale *100 1.471361

Break Even pointCVP ANALYSIS