Deltron company's Break Even Analysis
Particulars Amount
Selling price/unit ₹ 70,500
Direct Materials/unit A BREAK EVEN VOLUME
A.C ₹ 12,250 Total fixed cost/contribution per unit
HEATER ₹ 3,550 62857.1428571429
LED BULB ₹ 200 break even 62858
Direct Labour/unit ₹ 4,431,489,000
A.C ₹ 1,250
HEATER ₹ 550 B
LED BULB ₹ 50 required sales
Direct overhead/unit ₹ 24,900
direct mrktng&dist o/h /unit ₹ 1,500 100x
TOTAL VARIABLE COST ₹ 44,250 x
Contribution/unit ₹ 26,250 100x
PV ratio 0.372340426
c
total fixed cost 7000000000
annual manufacturing F.C ₹ 1,200,000,000 2606380000
interst cost ₹ 450,000,000 ₹ 956,380,000
total fixed cost ₹ 1,650,000,000 Rate of return
D
margin of safety
100x
x 23.234
actual sales 100x
break even sales
MOS
₹ 120,000,000
E break even volume
total increased fixed cost tfc/contribution per unit
annual manufacturing F.C ₹ 1,200,000,000 67428.5714285714
interst cost ₹ 450,000,000 B.E point 67429
total fixed cost ₹ 1,650,000,000
F 100x
Annual manufacturing fc(increassd ₹ 1,320,000,000 22.234
TFC ₹ 1,770,000,000 for 100
G
sales required to earn profitof 2.5 billion
x ₹ 11,145,727,023.69
BREAK EVEN VOLUME
contribution per unit
units
B.E sales (selling price*break even units)
(total fixed cost+desired profit)/pv ratio
(1650000000+12x)/0.37234
₹ 65,387,968.61
₹ 6,538,796,861.38 (req sales)
(1650000000+x)/0.37234
1650000000+x
13.66%
actual sales-breakeven sales
(1650000000+14x)/0.37234
₹ 71,016,613.58
₹ 7,101,661,358.35
₹ 4,431,489,000
₹ 2,670,172,358.35
units ₹ 4,753,744,500 B.E sales
(1650000000+15x)/0.37234
₹ 74,210,668.35
₹ 7,421,066,834.58 return on sales
o earn profitof 2.5 billion
(tfc+2.5 billion)/0.37234
selling price /unit $ 84.00
variable cost
direct $ 15.00
dml $ 12.00
ma overhead $ 4.00
selling cost $ 2.60
total variable cost $ 33.60
contribution/unit $ 50.40
annual fixed costs $ 420,000.00
break-even volume 8333.333333333 100x (420000+25x)/0.6
break even sales $ 700,000.00 x
fixed cost 1000000 100x ₹ - (req sales)
break even volume $ 19,841.27
break even sales ₹ 1,666,666.67
pv ratio 0.6 sales 60
sales 35 12000 1200000
700000.4
10500000
60
computer systems 772000
line supervisor salary 280000
mainatainance labour 360000
account enquiry slary 200000
printers 300000
residnetial commerical total proportions
lines given 117600 125000 242600 residnetial commerical
inquiries 9800 7500 17300 0.48474856 0.515251443
correspondence 0.56647399 0.433526012
letters 19600 2500 22100 0.88687783 0.113122172 provi lines
problem resolved 2345 5432 7777 0.30153015 0.698469847 inqu
corresp
problm
total
resi comm
$ 324,240.00 $ 157,174.87 $ 167,065.13
$ 447,760.00 $ 253,644.39 $ 194,115.61
$ 112,000.00 $ 54,291.84 $ 57,708.16
$ 98,000.00 $ 55,514.45 $ 42,485.55
$ 22,400.00 $ 19,866.06 $ 2,533.94
$ 47,600.00 $ 14,352.84 $ 33,247.16
$ 360,000.00 $ 108,550.86 $ 251,449.14
$ 200,000.00 $ 113,294.80 $ 86,705.20
$ 300,000.00 $ 266,063.35 $ 33,936.65
$ 1,912,000.00 $ 1,042,753.45 $ 869,246.55
particulars amount
direct materials
ac 12250
heater 3550
led lamps 200
direct labour
led lamps 1250
spare 550
led lamps 50
overheads
marketing 1500
overheads of all 24900
total variable cost 44250
sales 70500
contribution 26250
PE 0.37234
