Ans 4 case study of usha company. m 92% sure dat dis is rite.

If u find it difficukt 2 understand, cum 2

coll by 8.30am. Ill explain u d sum in cls. If u find any mistake do help me.
shakthi
Solution:
1. Given sp = 400; fc = 1,00,000(p.a); vc = 200
Contribution = sp- vc = 400 200 = 200rs
BEP(in units) = fc/ contr = 1,00,000/200 = 500 units
Therefore, usha company must sell 500 units in order to break even @ rs 400/unit.
2. Fc = 1,00,000; contr = 200; sp = 400; desired pft = 2,40,000
Sales = (fc + desr.pft)/pv ratio

pv ratio = (contr/sales) x 100

= (1,00,000 + 2,40,000)/(50/100)

= (200/400) x 100

= (3,40,000/50) x 100

= 50%

Sales = rs. 6,80,000

No. of units to be sold = tot.sales/sp per unit = 680000/400
= 1700 units.
3. For 350 units sold from jan to may,
Sp = 400; vc = 200; tax = 40%; fc = 1,00,000p.a
From june to December:
a) Sp = 400 40 = 360rs
Pft = tot.sales tot.cost
Tot.sales:
350 x 400 = 140,000
2700x 360= 972,000
Tot.units = 350 + 2700 = 3050 units and tot.sales = 140000 + 972000 = rs. 11,12,000

Tot.costs:
Tot.cost = fc + vc
Vc = rs.200/ unit. Therefore for 3050 units, vc = 3050 x 200 = rs. 610,000.
Hence, tot. cost = 100,000 + 610,000 = 710,000
Pft = 11,12,000 7,10,000 = Rs. 402,000.
Tax = 40% ( deduct this from d pft of 402,000)
So. Pft = 2,41,000.
b) Sp = 400 30 = 370rs; vc = 200 25 = rs. 175
Pft = tot.sales tot.cost
Tot.sales:
350 x 400 = 140,000
2200x 370= 814,000
Tot.units = 350 + 2200 = 2550 units and tot.sales = 140000 + 814000 = rs. 954,000

Tot.costs:
Tot.cost = fc + vc
Vc = rs.175/ unit. Therefore for 2550 units, vc = 2550 x 175 = rs. 446,250.
Hence, tot. cost = 100,000 + 446,250 = 546,250
Pft = 954,000 546,250 = Rs. 407,750.
Tax = 40% ( deduct this from d pft of 407,750)
So. Pft = 2,44,650.

c) Sp = 5% of 400 = 380rs; fc = 100,000 10000 = 90000

Pft = tot.sales tot.cost
Tot.sales:
350 x 400 = 140,000
2000x 380= 760,000
Tot.units = 350 + 2000 = 2350 units and tot.sales = 140,000 + 760,000 = rs. 900,000

Tot.costs:
Tot.cost = fc + vc
Vc = rs.200/ unit. Therefore for 2350 units, vc = 2350 x 200 = rs. 470,000.
Hence, tot. cost = 90,000 + 470,000 = 560,000
Pft = 90,000 560,000 = Rs. 340,000.
Tax = 40% (deduct this from d pft of 340,000)
So. Pft = 2,04,000.
Therefore, usha company shld select option B to achieve its annual after tax projective.
4. (I am not sure about this . please help me find answer for this. according to me everything
mentioned in the 2nd paragraph of the question are assumptions.)