# SMU MBA ASSIGNMENTS

## 1] XYZ ltd has recorded a sale of 60000 units in a year, with a selling price of Rs 6 per unit. Moreover, the company has recorded a prime cost and variable overhead to be Rs 3 and Rs 1 respectively. The company had a fixed cost of Rs 100000.

December 02, 2017 By: Meliza Category: 1st SEM

1] XYZ ltd has recorded a sale of 60000 units in a year, with a selling price of Rs 6 per unit. Moreover, the company has recorded a prime cost and variable overhead to be Rs 3 and Rs 1 respectively. The company had a fixed cost of Rs 100000.

1. Calculate BEP (in Rupees)
2. Calculate MOS

Solution :

Sales – 60,000 units per annum

Selling price – Rs.6.00 per unit

Prime cost – Rs. 3.00 per unit

Variable overheads – Rs. 1.00 per unit

Fixed cost – Rs.1, 00,000 per annum

Solution:

BEP in units = Fixed cost / (SP – VC) per unit

= 100000 / 6 – 4

= 100000 / 2 or 50,000 units

BEP in rupees        = BEP in units x selling price per unit

= 50,000 x Rs 6

= Rs. 3, 00,000

MOS   = (Actual sales – BEP sales) ÷Actual sales

= ((60,000 x 6) – 3, 00,000) / (60,000*6)

= 60, 000 / 3, 60,000

= 16.66%