June 8, 2021 admin January 20, 2022 Welcome to Bharadwaj Institute CMA Final SCM Name Phone Email ABC 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 remain the sameto decrease by 1.5%to decrease by 1%to increase by 1%A 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?None of these86.4%30.6%44%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₹4,050₹10,000₹3,990A 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:4000300020003500The 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:20%30%40%25%A 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:10,0003000800012,000₹11,000₹20,000₹25,000₹14,000The 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 be36,00,00030,00,00035,00,00025,00,000Which of the following would decrease unit contribution margin the most?15% increase in variable costs15% decrease in fixed costs15% decrease in selling price15% decrease in variable costsA 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:40000 Units20000 Units4000 Units30000 UnitsA 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 27.5%Decrease by 9.375%Increase by 37.5%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?₹10,50,000₹25,50,000₹35,00,000₹19,50,000By 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 is7,500 units8,200 units7,750 units8000 unitsB 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?2,00,0003,00,0001,00,0002,50,00075,000 units1,27,000 units1,11,000 units1,00,000 unitsTime is Up!