A business produces 200 units of a product by making the fol…
A business produces 200 units of a product by making the following expenditure:
(i) Materials—Rs. 30,000; (ii) Labour—Rs. 20,000; (iii) Factory Overheads—Rs. 4,000; (iv) Administrative Overheads—Rs. 5,754; and (v) Selling and Distribution Overheads—Rs. 1,500.
The products are sold at a price of Rs. 400 per unit.
The above expenditures are classified into fixed and variable types as follows:
Expenditure
Fixed
Variable
i. Materials
Nil
100%
ii. Labour
50%
50%
iii. Factory Overheads
25%
75%
iv. Administrative Overheads
100%
Nil
v. Selling & Distribution Overheads
60%
40%
From the above information, determine the following: Total Variable Costs and Fixed Costs. Contribution. P/V Ratio. BEPS in units and in value.
