Fundamentals of Financial Management, Third Edition

NUMERICAL PROBLEMS

1. If fixed cost is Rs 50,000, variable cost is Rs 15 per unit and sales price is Rs 20 per unit, find out BEP in terms of:
   1. no. of units, and
   2. value.
2. Based on the figures in Q. 1., above, compute the volume of production/sales if the firm desires to earn a profit amounting to Rs 30,000.
3. Find the margin of safety if the actual sales amount to Rs 90,000 and the BEP sales amount to Rs 50,000.
4. A firm produces two products, A and B. the total fixed cost is Rs 50,000. The variable cost and sale price per unit is Rs 3 and Rs 5 respectively for Product A and Rs 4 and Rs 6 for Product B. Both of the products are produced in equal proportions. Find out the BEP.
5. A company produces three products — A, B and C. The combined (non-separable) ...