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Calculate the profit for sales of Rs. 2,50,000 and the sales required for a profit of Rs. 7,500.

Accounting

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2 parts
iv

Rs. 25,000\text{Rs. } 25,000

v

Rs. 191,666.67\text{Rs. } 191,666.67

Step-by-step solution

3 steps

Here are the calculations for the remaining parts:

Part iv· 2 steps

Amount of profit if sale is Rs. 2,50,000.

  1. Calculate the Contribution from the given sales.

    Contribution=Sales×P/V Ratio\text{Contribution} = \text{Sales} \times \text{P/V Ratio} Contribution=Rs. 250,000×0.30=Rs. 75,000\text{Contribution} = \text{Rs. } 250,000 \times 0.30 = \text{Rs. } 75,000
  2. Calculate the Profit using the Contribution and Fixed Cost (Rs.

    50,000 from previous calculation).

    Profit=Contribution−Fixed Cost\text{Profit} = \text{Contribution} - \text{Fixed Cost} Profit=Rs. 75,000−Rs. 50,000=Rs. 25,000\text{Profit} = \text{Rs. } 75,000 - \text{Rs. } 50,000 = \boxed{\text{Rs. } 25,000}

Part v

Rs. 191,666.67\text{Rs. } 191,666.67

Sale in rupees when desired profit is Rs. 7,500.

  1. Apply the formula for sales at a desired profit.

    Sales (in Rs.)=Fixed Cost+Desired ProfitP/V Ratio\text{Sales (in Rs.)} = \frac{\text{Fixed Cost} + \text{Desired Profit}}{\text{P/V Ratio}} Sales (in Rs.)=Rs. 50,000+Rs. 7,5000.30\text{Sales (in Rs.)} = \frac{\text{Rs. } 50,000 + \text{Rs. } 7,500}{0.30} Sales (in Rs.)=Rs. 57,5000.30=Rs. 191,666.67\text{Sales (in Rs.)} = \frac{\text{Rs. } 57,500}{0.30} = \boxed{\text{Rs. } 191,666.67}
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