Online sessions to test your Knowledge. Best of Luck January 22, 2022 Welcome to Bharadwaj Institute CMA Final SCM Name Phone Email A company has a break even point when sales are 3,20,000 and variable cost at that level of sales are 2,00,000. How much would contribution margin increase or decrease if variable expenses are dropped by 30,000?Increase by 37.5%Increase by 27.5%Decrease by 9.375%Increase by 9.375%A Company requires ₹85,00,000 in sales to meet its target net profit. Its contribution margin is 30% and the fixed costs are ₹15,00,000. What is the target net profit?₹35,00,000₹25,50,000₹19,50,000₹10,50,000Which of the following would decrease unit contribution margin the most?15% decrease in selling price15% decrease in variable costs15% decrease in fixed costs15% increase in variable costs₹11,000₹14,000₹20,000₹25,000ABC Limited has current PBIT of ₹19.20 lakhs on total assets of ₹96 lakhs. The company has decided to increase assets by ₹24 lakhs, which is expected to increase the operating profit before depreciation by ₹8.40 lakhs. There will be a net increase in depreciation by ₹4.80 lakhs. This will result in ROIto decrease by 1.5%to increase by 1%to remain the sameto decrease by 1%1,00,000 units75,000 units1,11,000 units1,27,000 unitsA company produces a product which is sold at a price of ₹80. Its Variable cost is ₹32. The company’s Fixed cost is ₹11,52,000 p.a. The company operates at a margin of safety of 40%. The total sales of the company is:20000 Units30000 Units40000 Units4000 UnitsA company has 2000 units of an obsolete item which are carried in inventory at the original purchase price of ₹30,000. If these items are reworked for ₹10,000, they can be sold for ₹18,000. Alternatively, they can be sold as scrap for ₹3,000 in the market. In a decision model used to analyze the reworking proposal, the opportunity cost should be taken as:10,0008000300012,000A company makes a single product which it sells at ₹10 per unit. Fixed costs are ₹48,000 per month and the product has a contribution to sales ratio of 40%. In a period when actual sales were ₹1,40,000, the company’s margin of safety in units was:3500400020003000The break-even point of a manufacturing company is ₹1,60,000. Fixed cost is ₹48,000. Variable cost is ₹ 12 per unit. The PV ratio will be:40%20%30%25%An organisation is considering the costs to be incurred in respect of a special order opportunity. The order would require 1,250 kgs of material D. This is a material that is readily available and regularly used by the organisation on its normal products. There are 265 kgs of material D in stock which cost ₹795 last week. The current market price is ₹3.24 per kg. Material D is normally used to make product X. Each unit of X requires 3 kgs of material D, and if material D is casted at ₹3 per kg, each unit of X yields a contribution of ₹15. The relevant cost of material D to be included in the costing of the special order is nearest to:₹10,300₹10,000₹3,990₹4,050The P/V ratio of a firm dealing in Electrical equipment is 50% and the margin of safety is 40%. BEP of the firm at a sales volume of ₹50,00,000 will be30,00,00025,00,00036,00,00035,00,000By making and selling 9,000 units of a product, a company makes a profit of ₹10,000, whereas in the case of 7,000 units, it would lose ₹10,000 instead. The number of units to break-even is7,750 units8,200 units8000 units7,500 unitsA company determines its selling price by marking up variable costs 60%. In addition, the company uses frequent selling price mark down to stimulate sales. If the mark down average 10%, what is the company’s contribution margin ratio?86.4%30.6%None of these44%B Ltd. Has earned net profit of ₹1 lakh, and its overall P/V ratio and margin of safety are 25% and 50% respectively. What is the total fixed cost of the company?2,50,0003,00,0002,00,0001,00,000Time is Up!