## 61. A company manufactures a single product for which cost and selling price data are as follows:

Selling price per unit - Rs 12

Variable cost per unit - Rs 8

Fixed cost for a period - Rs 98,000

Budgeted sales for a period - 30,000 units

The margin of safety, expressed as a percentage of budgeted sales,is:

Selling price per unit - Rs 12

Variable cost per unit - Rs 8

Fixed cost for a period - Rs 98,000

Budgeted sales for a period - 30,000 units

The margin of safety, expressed as a percentage of budgeted sales,is:

## 62. "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.
"

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. "

## 63. "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."

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."

## 64. "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.
"

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. "

## 65. 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?

## 66. Capital gearing ratio is ___________.

## 67. "After inviting tenders for supply of raw materials, two quotations are received as follows—

Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"

Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"

## 68. In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs 3,60,000. Joint costs allocated to product A is.

## 69. A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengeRs Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:

## 70. The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

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