Daily Answer Writing Practice for Commerce Optional UPSC (Mains)- Day 57

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#Q.1) A company has fixed cost of  Rs. 90,000, Sales Rs. 3,00,000 and Profit of  Rs. 60,000.
Required:
(i) Sales volume if in the next period, the company suffered a loss of Rs. 30,000.
(ii) What is the margin of safety for a profit of Rs. 90,000?- 15 Marks

#Q.2) Following informations are available for the year 2013 and 2014 of PIX Limited:

 Year                                 2013                                                 2014

Sales                                 Rs. 32, 00,000                          Rs. 57, 00,000

Profit/ (Loss)                      Rs. (- 3,00,000)                       Rs. 7, 00,000

Calculate – (a) P/V ratio, (b) Total fixed cost, and (c) Sales required to earn a Profit of Rs. 12,00,000.- 15 Marks

#Q.3) The P/V Ratio of Delta Ltd. is 50% and margin of safety is  40%. The company sold 500 units  for Rs.5,00,000. You are required to calculate:

(i) Break- even point, and

(ii) Sales in units to earn a profit of 10% on sales- 15 Marks

 

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