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CFM Assignment

The document outlines an assignment for MBA students focusing on Cost and Financial Management, presenting various practical problems related to financial calculations such as P/V ratio, break-even sales, profit calculations, and budget preparations for different companies. It includes detailed scenarios for multiple companies, requiring students to apply financial management concepts to solve for various metrics. The assignment is structured in a question format, prompting students to perform calculations based on provided data.

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31 views4 pages

CFM Assignment

The document outlines an assignment for MBA students focusing on Cost and Financial Management, presenting various practical problems related to financial calculations such as P/V ratio, break-even sales, profit calculations, and budget preparations for different companies. It includes detailed scenarios for multiple companies, requiring students to apply financial management concepts to solve for various metrics. The assignment is structured in a question format, prompting students to perform calculations based on provided data.

Uploaded by

bdodo807
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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VIJAY PATIL SCHOOL OF MANAGEMENT

MASTER OF BUSINESS ADMINISTRATION


(SEMESTER II)
COST AND FINANCIAL MANAGEMENT
(ASSIGNMENT- 1)

Q1. X Ltd. produces and sales a single article at Rs. 30 each. The marginal cost of production
is Rs. 18 each and fixed cost is Rs. 1200 per annum.
Calculate
1) P/V ratio
2) The break even sales
3) The sales to earn a profit of Rs. 1500
4) Profit at sales of Rs. 9,000
5) Margin of safety at sales of Rs. 4,500

Q2. DEF Ltd. manufactures a product with the following information:

Selling price: ₹75 per unit


Marginal cost: ₹45 per unit
Fixed cost: ₹45,000 per year

Calculate:
1. P/V Ratio
2. Break-even sales in units and value
3. Sales required to earn a profit of ₹30,000 per year
4. Profit at sales of ₹1,20,000
5. Margin of safety at sales of ₹90,000

Q3. MN Ltd. shares the following data:

Particulars 2023 2024


Sales ₹7,00,000 ₹8,50,000
Profit ₹1,00,000 ₹1,50,000

Required:

1. P/V Ratio
2. Break-even Sales
3. Sales to earn a profit of ₹2,00,000
4. Profit when sales are ₹10,00,000
Q4. The Reliable Ltd. furnish the following information:

2023 2024
Sales 4,50,000 5,10,000
Profit 60,000 75,000

From the above, calculate the following:


1) P/V ratio
2) The breakeven sales
3) The sales to earn a profit of Rs. 1,20,000
4) Profit when sales are Rs. 7,50,000

Q5. Given the following:


Fixed cost Rs. 4,000
Break even point Rs. 10,000
Calculate P/ V ratio and profit when sales are Rs. 20,000.

Q6. From the information given below prepare flexible budget at 60% and 80% capacity.
Particulars Total ( Rs.)
10,000 units
(100 % capacity)
Variable overheads:
Indirect Material 7,500
Indirect Labour 22,500
Semi – variable overheads
Electricity( 40 % Fixed , 60 % variable) 37,500
Repairs and maintenance ( 80 % fixed , 20 % variable) 3,750
Fixed overheads:
Salaries 1,00,000
Insurance 5,000
Depreciation 25,000

Q7. Company: JKL Ltd.


Products:
Product A: Selling price ₹12,000
Product B: Selling price ₹10,000

Given Information:
Expected total sales for the first quarter (in units):
January: 500 units
February: 600 units
March: 700 units
The sales mix is:
Product A: 60%
Product B: 40%

Required: Prepare a Sales Budget for the first quarter, showing the total revenue for each month
by product type.

Q8.Prepare production budget and purchase budget from the following information:

Company: ABC Ltd.


Product: Electronic Gadgets

Expected sales for the next quarter:


January: 2,000 units
February: 2,500 units
March: 3,000 units
Opening finished goods inventory: 300 units
Desired closing finished goods inventory:
250 units at the end of January
300 units at the end of February
350 units at the end of March
Each unit of finished product requires:
1.5 kg of raw material X
2 kg of raw material Y
Opening inventory of raw materials:
Raw material X: 500 kg
Raw material Y: 700 kg
Desired closing inventory of raw materials:
Raw material X: 600 kg at the end of each month
Raw material Y: 800 kg at the end of each month

Q9. From the following information, Prepare the Production Budget showing the required
production for each month.
Calculate the total cost of production for the quarter, including both direct material and direct
labour.

Company: GHI Ltd.


Product: T-Shirts

Expected sales for the next quarter:


January: 3,000 units
February: 3,500 units
March: 4,000 units
Desired ending inventory of finished goods:
January: 1,000 units
February: 1,200 units
March: 1,400 units
Opening inventory of finished goods at the beginning of January: 800 units
Direct material cost per unit: ₹200
Direct labor cost per unit: ₹100

Q10. A company manufactures electronic devices. The following information pertains to the
production of 10,000 units:

Particulars Per unit (Rs.)


Direct Materials 100
Direct Labour 40
Variable Overheads 30
Fixed Overheads (Total Rs. 200,000) Rs. 20/unit
Selling Expenses (Fixed 15%) Rs. 12/unit
Distribution Expenses (Fixed 10%) Rs. 8/unit
Administrative Expenses (Fixed) Rs. 75,000

You are required to:


Prepare the budget for 6,000 units, 8,000 units, and 10,000 units, showing cost per unit, total
variable costs, and total fixed costs.

Q11. The sales Director of a manufacturing company reports that next year he expects to sell
50,000 units of a particular product.
The production manager consults the store keeper and caste his figures as follows:
Two kinds of raw materials, A and B , are required for manufacturing the product. Each unit
of the product requires 2 units of material A (costing Rs. 5 each) and 3 units of material B
(costing Rs 3 each).
The estimated opening stock is:
Finished products 10,000 units
Material A 12,000 units
Material B 15,000 units

The desirable closing stock is:


Finished products 14,000 units
Material A 13,000 units
Material B 16,000 units

Prepare the following budgets for the next year


a. Production Budget
b. Material purchase budget.

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