A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

Related Mcqs:

1. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

   A. 5,80,000
   B. 5,50,000
   C. 5,00,000
   D. 5,75,000

2. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

   A. 37.50
   B. 38.25
   C. 24.00
   D. 35.00

3. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:
   March 31,2010 – ` 56,000
   March 31, 2011 – ` 51,000
   March 31, 2012 – ` 64,000
   The entry on March 31, 2012 to rectify these omissions would include a

   A. Credit to wage expense for ` 64,000
   B. Debit to wage expense for ` 64,000
   C. Debit to wage expense for ` 51,000
   D. Debit to wage expense for ` 13,000

4. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

5. If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.

   A. 8,000 units
   B. 11,000 units
   C. 10,000 units
   D. 9,000 units

6. If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then

   A. Net Profit will decrease by 3,140
   B. Gross Profit will increase by 3,320
   C. Gross Profit will decrease by 3,500
   D. Gross Profit will decrease by 3,320

7. Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?

   A. 1,600
   B. 1,500
   C. 1,000
   D. 1,800

   Updated by: Mohammad Ejaz

8. Calculate the amount of cash if: Total assets=$10,000 Total liabilities=$10,000 Total Capital=$5000

   A. $6000
   B. $10,000
   C. $5000
   D. $1000

9. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.

   A. 2,40,000
   B. 2,10,000
   C. 2,00,000
   D. 1,80,000

10. Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:

    A. Adding 2,200 to closing stock
    B. Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
    C. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
    D. Deducting 1,800 from debtors