Tuesday, August 18, 2015

MEFA Breakeven point analysis problems( calculate solutions for the following problems)














FORMULAS IN B-E-P ANALYSIS

1)     Profit                     =                            Total sales or Revenue – Total cost  (or)
                                                               Sales – (Fixed cost + Variable cost) (or)
                                                               Sales – Fixed cost – variable cost
2)     Contribution          =                          Sales – Variable cost  (or)
                                                               Fixed Cost + Profit

                  Contribution = Sales – V.C = F.C + Profit

3)      Variable cost or Marginal cost =  Direct Material + Direct Labor +Direct Expenses


4)     B.E.P (Units)                                   =       Fixed cost (FC)
                                                                  Contribution(C)
                                                                  (Or)  Fixed Cost              (or)         Fixed Cost
                                                                       Sales – variable cost              F.C+ profit
5)     B.E.P (Value or Rupees)            =      Fixed cost × Sales       (or)    FC×S
                                                         Sales – variable cost          Contribution

              B.E.P(value) = BEP in Units × Selling price per unit

6)     P/V Ratio or Profit/volume ratio    =      Contribution × 100
                                                                            Sales

7)     P/v Ratio ( when two years data given) =    Change in profit ×100
                                                                             Change in sales
8)     BEP is calculated with the help of P/V Ratio =     Fixed cost
                                                                                          P/v Ratio
9)     F.C and V.C is calculated with help of following formulas:
                                                                                 
                              Fixed cost      =      Sales × P/v Ratio – Profit
                              Variable cost =      Sales × (1 – P/v Ratio)
                             
                              
10) Number of units required to earn Desired profit: Fixed Cost + Desired profit
                                                                                                   Contribution
11) Sales required for Desired profit  =    Fixed cost + Desired profit× Sales
                                                                             Sales – Variable Cost
(or) with the help of p/v Ratio  =  Fixed cost +Desired profit
                                                                 P/V Ratio
12) Margin of Safety (MOS)             =   Actual sales – BEP sales (or)
                                                     =        Profit
                                                             P/V Ratio
13) MOS Ratio   =      MOS×  100
                               Sales

Note: MOS is the safety margin how much output or sales level can fall before a business reaches its BEP.




                  PROBLEM ON BREAK-EVEN POINT ANALYSIS
1)From the following data calculate BEP .
Selling price per unit = 50 Rs.
Variable cost per unit= 30 Rs.
Fixed Cost = 200000 Rs.
                                                     Answer: 10000 Units
2)From the following information find out the amount of profit earned during the year
Fixed cost = 500000 Rs.
Selling price per unit = 15 Rs.
Variable cost per unit = 10 Rs.
Output level               = 150000 units
                                                   Answer: 250000 Rs
3)From the following data, calculate Break-even point.
Sales = 800000 Rs.
Fixed Expenses 200000 RS
Variable expenses:
Direct material = 180000
Direct Labor    = 120000
Other variable
Expenses         = 100000
                       ___________
Total VC  =     400000 Rs.
                     ____________
                                               Answer:400000 Rs


4)Calculate BEP with the help of following details:
Sales           = 500000 Rs.
Fixed cost   = 100000 Rs.
Profit          = 150000 Rs.
                                          Answer: 200000 Rs.
5)Calculate Margin of safety (MOS)  and P/v ratio with the help of following data:
Sales                    =    300000 Rs.
Fixed Expenses  =     75000 Rs.
Variable Expenses
 Direct Material   = 100000 Rs.
Direct Labor       =  60000 Rs.
Direct expenses  = 40000 Rs.
                                       Answer: BEP = 225000 Rs.
                                                     MOS = 75000 Rs.
6) Determine the amount of fixed cost or expenses and also calculate BEP sales from the following particulars.
Sales     = 500000 Rs.
Direct Material  =  150000 Rs.
Direct labor       =  120000 Rs.
Direct Expenses=  60000 Rs.
Profit                   = 70000 Rs.
                                   Answer : Fixed Cost = 100000 Rs.
                                                  BEP sales  = 294118 Rs.

7) From the following figures calculate sales required to earn a desired profit of 120000 Rs.
Sales              = 600000 Rs.
Variable cost = 375000Rs.
Fixed cost     = 180000 Rs.
                                    Answer: Sales required : 800000 Rs.
8) From the following data calculate Number of units that must be sold to earn  a profit of 150000 Rs.
Selling price per Unit   =  50Rs.
Variable cost per Unit =  30Rs.
Fixed cost                      = 200000 Rs
                                 Answer: No of units required :17500 Units
9) The operating results of a company for the last two years are as follows:
YEAR                           SALES(Rs)                              PROFIT(Rs)
 2004                           270000                                           6000
2005                            300000                                           9000
Calculate 1) P/v ration 2) BEP
                                Answer: P/v Ratio = 10%
                                              BEP        = 210000 Rs
                                              Contribution = 27000 Rs.
10) calculate BEP in terms of units and in terms of sales from the following particulars:
Fixed cost      =  300000 Rs.
Variable cost per Unit = 15 Rs.
Selling Price Per Unit =  20 Rs.
                             Answer: BEP  Units = 60000 : Rupees: 1200000 Rs.
11) the following data are obtained from the records of a manufacturing company:
YEAR                           SALES(Rs)                              PROFIT(Rs)
 2009                              80000                                           10000
2010                               90000                                           14000
Calculate 1) P/v ration 2) BEP
                           Answer: P/V Ratio = 40%
                                         BEP          = 55000 Rs.
12) The operating result of a company for the last Two periods are as follows:
PERIOD                           SALES(Rs)                              PROFIT(Rs)
 I                                          270000                                        6000
II                                         300000                                       15000
Calculate: 1) P/v ration
                 2) BEP
                 3) Sales required to earn a profit of 20000 Rs.
                 4) Profit when the sales are 500000 Rs.

                       Answer:  P/v Ratio = 30%, BEP = 250000 Rs.
                                       Sales required= 316667 Rs.

                                       Profit required = 75000 Rs. 

Wednesday, July 22, 2015

Assignment questions on MEFA for Third year students (ECE "D" and ECM "A"



Write the answers for the following questions

1) What is Managerial Economics? Explain its Nature, Scope and Importance
2) Explain the Law of variable proportion
3) Explain the perfect competition? Explain its features and price determination

First Middle Assignment Questions on Management Science for B.Tech IT secton "B" students









Write  answers for the following questions: 

1) What is Management? Explain the 14 principles of management given by Henry Fayol.
2) Explain various types of production method with suitable examples.
3) What is Material Management? explain various techniques used under material management.

Tuesday, May 26, 2015

Attended Investor's awareness program in Aditya Trading solutions













It is my pleasure to inform that Mr.Ch.R.S.Ch.Murthy Assistant Professor and I attended investor's awareness program in Aditya Trading solutions, Hyderabad. it was a great experience for both of us to attend this kind of seminar.
In this seminar we gained good knowledge over the stock market, Equity trading and Derivatives trading and its importance .according to experts opinion the present market position is good and tend to increment in the total market. it is very much necessary of creating more awareness over the stock market in india, compare to other investment avenues like Gold, Real estate, Fixed deposits, Recurring deposits and other securities. The Investors objective is to earn the profit, compare to other investment avenues share market tends to get more profit with continuous observation of selected shares related to various sectors in the country.Mr.Suresh who is the Vp in ATS lectured on basics of capital marketing. I finally thanks to SMS, SNIST HOD for sending us to this program.