02-17-2006, 09:45 PM
Dear Sam,
Thank you for your prompt reply. dear kindly check this example and tell me whether im doing right or wrong?
we have these figures
->Sale price of one unit=1000
->Fixed Cost for one unit=500
->variable Cost for one unit=200
->Contribution as per Massod=1000-200=8000
and we desire that one unit give us Rs=300 profit
CVP=(total fixed costs + desired level of profit)/contribution per unit of production.=???
CVP=1.00
how can we analyse???
Thanks & Regards,
Tariq!!!
Thank you for your prompt reply. dear kindly check this example and tell me whether im doing right or wrong?
we have these figures
->Sale price of one unit=1000
->Fixed Cost for one unit=500
->variable Cost for one unit=200
->Contribution as per Massod=1000-200=8000
and we desire that one unit give us Rs=300 profit
CVP=(total fixed costs + desired level of profit)/contribution per unit of production.=???
CVP=1.00
how can we analyse???
Thanks & Regards,
Tariq!!!