CS-54 Finance & Accounting On Computers Dec- 2002
Q.2. From the following information relating to Smith Sons, calculate the breakeven point and the turnover required to earn a profit of Rs. 3,00,000.
Fixed Overheads : 2,10,000 (total)
Variable Costs : 20 per unit
Selling Price : 50 per unit
If the company is earning a profit of Rs. 3,00,000, what is the margin of safety-available to it? Also state the significance of this margin.

