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38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.?
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38. From the following figures, find the break even volume: Selling pr...
Break Even Volume Calculation:
- Selling price per ton = 69.50
- Variable cost per ton = 33.50
- Contribution per ton = Selling price per ton - Variable cost per ton = 69.50 - 33.50 = 36
- Fixed Expenses = 18.02 lakhs
- Break Even Volume = Fixed Expenses/Contribution per ton
- Break Even Volume = 18,02,000/36 = 50,055 tons
Additional Profit Calculation:
- 40% capacity of the existing volume = 0.4 * 50,055 = 20,022 tons
- Selling price for the additional production of 20% capacity at 10% lower = 69.50 * 0.9 = 62.55
- Selling price for the additional production of another 20% capacity at 15% lower = 69.50 * 0.85 = 59.08
- For the additional production of 20% capacity at 10% lower selling price:
- Contribution per ton = Selling price per ton - Variable cost per ton = 62.55 - 33.50 = 29.05
- Total revenue for 20,022 tons = 20,022 * 62.55 = 12,53,116.10
- Total variable cost for 20,022 tons = 20,022 * 33.50 = 6,71,617
- Total contribution for 20,022 tons = 20,022 * 29.05 = 5,83,736.10
- Additional profit = Total contribution - Fixed expenses = 5,83,736.10 - 18,02,000 = -12,18,263.90 (Negative Profit)
- For the additional production of another 20% capacity at 15% lower selling price:
- Contribution per ton = Selling price per ton - Variable cost per ton = 59.08 - 33.50 = 25.58
- Total revenue for 20,022 tons = 20,022 * 59.08 = 11,84,855.76
- Total variable cost for 20,022 tons = 20,022 * 33.50 = 6,71,617
- Total contribution for 20,022 tons = 20,022 * 25.58 = 5,13,238.76
- Additional profit = Total contribution - Fixed expenses = 5,13,238.76 - 18,02,000 = -12,88,761.24 (Negative Profit)
Explanation:
- Break Even Volume is the volume at which the total revenue equals the total cost, and there is no profit or loss.
- In this case, the Break Even Volume is 50,055 tons, which means the company needs to sell at least 50,055 tons to cover its fixed expenses and variable costs.
- The additional production of 40% capacity is 20,022 tons, which is calculated by taking 40% of the existing volume.
- The selling price of the additional production is lower than the existing price, which reduces the contribution per ton and, in turn, reduces the profit.
- For both additional productions, the total revenue is less than the total variable cost, which means there is a negative contribution
- Selling price per ton = 69.50
- Variable cost per ton = 33.50
- Contribution per ton = Selling price per ton - Variable cost per ton = 69.50 - 33.50 = 36
- Fixed Expenses = 18.02 lakhs
- Break Even Volume = Fixed Expenses/Contribution per ton
- Break Even Volume = 18,02,000/36 = 50,055 tons
Additional Profit Calculation:
- 40% capacity of the existing volume = 0.4 * 50,055 = 20,022 tons
- Selling price for the additional production of 20% capacity at 10% lower = 69.50 * 0.9 = 62.55
- Selling price for the additional production of another 20% capacity at 15% lower = 69.50 * 0.85 = 59.08
- For the additional production of 20% capacity at 10% lower selling price:
- Contribution per ton = Selling price per ton - Variable cost per ton = 62.55 - 33.50 = 29.05
- Total revenue for 20,022 tons = 20,022 * 62.55 = 12,53,116.10
- Total variable cost for 20,022 tons = 20,022 * 33.50 = 6,71,617
- Total contribution for 20,022 tons = 20,022 * 29.05 = 5,83,736.10
- Additional profit = Total contribution - Fixed expenses = 5,83,736.10 - 18,02,000 = -12,18,263.90 (Negative Profit)
- For the additional production of another 20% capacity at 15% lower selling price:
- Contribution per ton = Selling price per ton - Variable cost per ton = 59.08 - 33.50 = 25.58
- Total revenue for 20,022 tons = 20,022 * 59.08 = 11,84,855.76
- Total variable cost for 20,022 tons = 20,022 * 33.50 = 6,71,617
- Total contribution for 20,022 tons = 20,022 * 25.58 = 5,13,238.76
- Additional profit = Total contribution - Fixed expenses = 5,13,238.76 - 18,02,000 = -12,88,761.24 (Negative Profit)
Explanation:
- Break Even Volume is the volume at which the total revenue equals the total cost, and there is no profit or loss.
- In this case, the Break Even Volume is 50,055 tons, which means the company needs to sell at least 50,055 tons to cover its fixed expenses and variable costs.
- The additional production of 40% capacity is 20,022 tons, which is calculated by taking 40% of the existing volume.
- The selling price of the additional production is lower than the existing price, which reduces the contribution per ton and, in turn, reduces the profit.
- For both additional productions, the total revenue is less than the total variable cost, which means there is a negative contribution
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38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.?
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38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.?.
38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.?.
Solutions for 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? defined & explained in the simplest way possible. Besides giving the explanation of
38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.?, a detailed solution for 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? has been provided alongside types of 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? theory, EduRev gives you an
ample number of questions to practice 38. From the following figures, find the break even volume: Selling price per ton Variable cost per ton * 69.50 33.50 Fixed Expenses 18.02 lakhs If this volume represents 40% capacity, what is the additional profit for an added production of 40% capacity, the selling price of which is 10% lower for 20% Capacity production and 15% lower, than the existing price, for another 20% capacity.? tests, examples and also practice B Com tests.
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