Costing - Study Mode
[#111] "What is the company's breakeven point: Selling price - Rs 6 per unit Variable production cost - Rs 1.20 per unit Variable selling cost - Rs 0.40 per unit Fixed production cost - Rs 4 per unit Fixed selling cost - Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.
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Correct Answer
(D) 10,909 units
[#112] "How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price - Rs 6 per unit Variable production cost - Rs 1.20 per unit Variable selling cost - Rs 0.40 per unit Fixed production cost - Rs 4 per unit Fixed selling cost - Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units."
Correct Answer
(D) 13,409 units
[#113] "It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? Selling price - Rs 6 per unit Variable production cost - Rs 1.20 per unit Variable selling cost - Rs 0.40 per unit Fixed production cost - Rs 4 per unit Fixed selling cost - Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.
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Correct Answer
(C) 11,885 units
[#114] A company's break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company's annual fixed costs?
Correct Answer
(C) Rs 3,00,000
Explanation
Solution: Fixed Costs = Break-Even Point (Units) × (Revenue per Unit – Variable Cost per Unit) = 6000 × ( 90 - 40) = Rs. 300000.
[#115] Capital gearing ratio is ___________.
Correct Answer
(B) Long-term solvency ratio
Explanation
Solution: Capital gearing ratio is Long-term solvency ratio. The term capital gearing refers to describe the relationship between fixed interest and/or fixed dividend bearing securities and the equity shareholders’ fund.