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A firm has been producing 4000 units of an item with its break even at 2000 units. Now it increases the no. of units produced to 5000. What is the change in the break even no. of units ?
a. 3000
b. 2000
c. 1000
d. nil
Ans - d
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A firm has been producing 4000 units of an item with its break even at 2000 units. Now it increases the no. of units produced to 5000. 5000 units are 90% of plant capacity, what is the increase in capacity utilization in percentage?
a. 15%
b. 20%
c. 25%
d. 18%
Ans - d
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A company had selling price per unit of Rs.100. Its Break even point units are 2000. If variable cost is Rs.60, what is the fixed cost?
a. Rs. 50000
b. Rs. 60000
c. Rs. 70000
d. Rs. 80000
Ans - d
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A company is forced to sell its product at Rs. 90 due to competition, which it had been selling at Rs.100 earlier. There is no change in the variable cost. Previously the Break even point units were 2000 and now 2667. What is the variable cost, if fixed cost is Rs. 80000/-?
a. Rs 60
b. Rs 50
c. Rs.40
d. Rs.30
Ans - a
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At 40%, the capacity utilization break even point, the total no. of units produced is 5000. What is the no. of break even units?
a. 1500
b. 1800
c. 2000
d. 2500
Ans - c
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The selling price of a product is Rs. 90 and contribution Rs. 20 with fixed cost of Rs. 40000. What is the total variable cost of BEP?
a. Rs. 80000
b. Rs. 120000
c. Rs. 130000
d. Rs. 140000
Ans - d
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A firm sells 4000 units and earns profit of Rs. 80000. If fixed cost is Rs. 60000, what is the break even no. of units?
a. 2000
b. 2500
c. 3000
d. 3500
Ans - c
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In respect of a firm having fixed cost of Rs. 160000 and variable cost Rs. 20 per unit, what is the amount of selling price, if break even no. of units is 4,000?
a. Rs. 20
b. Rs. 40
c. Rs. 60
d. Rs. 80
Ans - c
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Annual sales Rs 95 lacs, Annual Raw material Consumption Rs 45 lacs, Manufacturing Expenses during the year Rs 15 lacs. Administrative & Selling expenses Rs 10 lacs, Opening and closing stock of the work-in-process is same. Opening & closing stock of finished goods is Rs 1 lac and Rs 2 lacs. From these data answer the following-
a. Cost of production is____
b. Cost of Sales is________
c. Cross Profit is_________
d. Operating Profit is______
e. Net Profit is___________
Ans - A - 60, B – 59, C – 36, D – 26, E - 26
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