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  3. r company has prepare the following projections fo

R Company has prepare the following projections for the coming year 2008: Rs....

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Question

Accounting

R Company has prepare the following projections for the coming year 2008:

Rs.

Sales 150,000

Variable cost 112,500

Contribution margin 37,500

Fixed cost 20,000

Net income 17,500

Required:

  1. Compute the following:
  1. Breakeven sales in rupees.
  2. Margin of safety in rupee and in percentage(2 decimal places).
  1. A minimum unit to be sold to breakeven, if the sale price is Rs.15/unit (round off to whole number).

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