Word Count : 927

---

To address the problem from the perspective of *Accounting for Managers*, we begin by understanding the key elements provided: * Total production capacity = 500 fans per annum * Selling price per fan = Rs. 1,000 * Variable cost per fan = Rs. 800 * Fixed overheads = Rs. 24,000 per annum From this, we calculate: ### 1. Contribution per Unit Contribution per unit is calculated as: Selling Price – Variable Cost = Contribution \= Rs. 1,000 – Rs. 800 \= Rs. 200 per fan This contribution is the amount available from each unit to first cover fixed costs, and thereafter to generate profit. --- ### 2. Break-even Point (BEP) The Break-even Point is where Total Contribution = Total Fixed Costs. This can be computed in terms of both output (units) and sales (rupees). #### a) Break-even Output (Units) $$ \text{Break-even Output (Units)} = \frac{\text{Fixed Costs}}{\text{Contribution per unit}} = \frac{24,000}{200} = 120 \text{ fans} $$ So, the factory must produce and sell 120 fans to reach the break-even point. #### b) Break-even Sales (Rupees) $$ \text{Break-even Sales} = \text{Break-even Output} \times \text{Selling Price per fan} _____ ________ _________ ______ _____ _________ _____ __________ __________ _____.
_____ __________ _____ _______ ___.
_______ ___ _______ _______ _________ _____ ____ _______ _______ ___ ________ ___.
_________ __________ ___ _______ ________.
_________ _____ ________ _____ _________ _________ ________ ____ _____ _______.
_____ ____ ________ ________ ________ ________ ________ _____.
_______ ______ ______ ______ ___ _______ ______ ___ _____.
_____ ______ ________ _____ ___ ___.
____ __________ _____ ____ _________ _______.
______ ______ _________ _____ ____ _____ _________ _______ _______.
________ ___ ___ _______ _____ _________ __________ ____ _______.
_________ ___ ____ _______ ______ _______ ____.
________ ________ _______ ______ _______ ___ ______.
_______ _________ ______ ______ _________ _________ ___ _______ ______.
______ ________ _____ ___ ___ _____ _____ _____.
________ ____ _________ ____ __________ _____.
__________ __________ _____ _________ ________ ___ _________.
____ _____ ______ __________ ______ ______ __________.
______ ____ _______ _______ _____ ____ ___ __________ _________ ______ ________ _______.
________ ________ ______ _______ _____.
_______ _______ _______ _______ ________ ____ _________ __________.
____ ____ ________ _______ ____ __________.
_________ ______ ___ _________ _____ ____ ____.
______ ______ ____ __________ ______ __________ ________ ______ _______ ______ ____ ___.
_______ _____ _________ ____ ________ _________ ___.
________ _____ ________ _____ _____.
_____ ____ _________ ______ __________ _________ _______ _________.
___ _________ ___ ________ _____ ______ _____ _________.
_______ _____ ____ ________ ____ ____ _________ ______.
_________ ___ _________ _____ _______ ___.
____ ________ ____ _________ _________ ___ ______ __________ ____.
_____ ___ ____ _______ ____.
______ ______ ____ ___ _______ ______ ______ _________ ______ _________.
______ ____ _____ ______ ____ ______ _____ ____ _____ _____ ___.
____ __________ ______ ____ ____ _____ ________ ________.
___ ________ ____ ______ _____ _________ _____ _________.
_______ ___ ______ ____ ___ __________ __________ _____ _____ __________ ___ __________.
__________ __________ ______ ______ ________ __________ ______ ____.
_____ _________ ____ ____ ____ ____ ___ __________.
____ _____ ______ _____ ______.
_____ ___ ____ __________ ____ ____ ___ _________.
__________ ______ ______ _______ ____ ______.
_____ _________ ___ __________ _____ ______.
____ ______ _______ _________ _________ _____ __________ ___ _______.
__________ ____ ______ __________ _______ _________ ______.
____ _____ __________ ____ _________ ___ __________ _____ ________ ________ __________ _____.
___ ________ ___ _____ _____ ___ ________ ______ _______.
_________ ______ ______ _____ __________ _________ __________ _________.
______ _______ _______ ____ ___ _______ ________ ___ __________ _________ __________ ____.
_______ _______ ________ _________ _____ __________ ____ _______ ________ ________ _____ ________.
________ ______ ________ ___ ________ _____ ___ ___.
___ _______ ______ ____ ____ __________ _____ _________ __________ ____ _______.
___ _______ ______ ___ _________ _________ ______.
____ ____ ______ ______ _____ __________ ______ _____ ______ _______ ____.
_____ _____ ______ _____ _____ ___ _________ _____ ______ ___ _____ ____.
_______ ____ ______ _____ _______ ___ ____ ____ ___ _____ ______.
____ _________ ________ _________ __________ _______ ______.
____ ____ _____ ______ __________ ________ _______.
____ ___ ___ ____ _____.
______ ____ _______ _________ ________ __________ __________ ____.
_______ _____ ______ _______ _________ __________ ______ ________.
_____ ______ _____ ________ _______ __________ ____ _______ _____ ____ __________ ____.
__________ _______ _____ _____ _____ ___.
______ _______ _________ _____ _________ _______ ____ _____ _________ _____.
_______ _______ ____ _____ _______ _________ _______ ___ ___ ______.
_______ ___ _________ _____ ____ _______ _____.
__________ _______ ____ ____ ____ __________ ______.
_________ __________ ____ _________ __________ ______ _______.
__________ __________ ______ ________ _________ __________.
_____ _______ _______ ______ __________ ______.
____ __________ ____ __________ _______ ___ ________ ____ _______ ____ __________.
______ __________ ___ ________ _______ _________ ____ _______ ______ ____ _____.
_______ ___ ____ __________ _____ _______ _____ _______ _____ ____ _____ _______.
________ _________ _______ _________ _________ ______ ______ ___ __________ ____ ______.
_________ __________ ______ ____ _________ ___ ________ _______ _______ ___ ________.
___ ________ ___ ________ __________ ____ ____ _______ ______ _________.
______ _______ _________ _________ _____ ___ ____ _____ _______ ____ __________ _________.
______ __________ _______ _______ __________ _____.
______ ___ __________ ___ ______ ___ ____.
________ ____ ____ _____ __________ _____ ________ _____ ________ ______ _________ _______.
_________ ________ ______ __________ ____ ______ __________.
_________ ________ ___ ____ _________ _____ _______ _______ ________.
__________ ___ ________ ____ __________ __________ _______ _____.
_________ ____ ___ ______ _______.
_______ ________ ____ _____ _________ ________.
__________ _______ _______ __________ __________ _________ _____ _________ ___ _____ _________.
_________ ____ __________ _________ ___ ___ _______ _______ ______ _____ _____.
__________ ______ ________ ___ _____ _____ ____ ______.
___ ___ _______.
Get Full Answer on WhatsApp