compute the beps in the following independent situations if 609592

The following is the budget of ABC Ltd:

Particulars

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Fixed Cost
Rs.

Variable Cost Rs.

Total Rs.

Budgeted sales:1,00,000 units @ Rs. 10 per unit

10,00,000

Budgeted costs:

Direct material

–

1,80,000

Direct labour

–

2,00,000

Factory overhead

1,40,000

60,000

Administration overhead

1,20,000

20,000

Distribution overhead

1,00,000

60,000

Total

3,60,000

5,20,000

8,80,000

Budgeted profit

1,20,000

Compute the BEPs in the following independent situations, if:

  1. a 10% increase is effected in the fixed costs.
  2. a 10% increase is effected in the variable costs.
  3. a 10% increase is effected in the sales price which will result in a reduction in units sold by 5%.
  4. a 10% increase in the fixed costs and a 5% decrease in the variable costs is effected.
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