## OUR OWN PUBLICATION FROM 1ST JULY, 2018 FOR B.COM

1. B.COM FIRST SEMESTER COMPLETE NOTES (CHOICE BASED) WITH SOLVED FINANCIAL ACCOUNTING BOOK
2. B.COM 3RD SEM COMPLETE NOTES WITH SOLVED BOOKS OF:
*BUSINESS STATISTICS SOLVED PAPERS OF LAST 7 YEARS
* FINANCIAL MANAGEMENT BOOK
3. B.COM 5TH SEMESTER COMPLETE NOTES WITH SOLVED BOOKS OF MANAGEMENT ACCOUNTING OF JAIN AND NARANG

## Tuesday, March 18, 2014

### IGNOU SOLVED ASSIGNMENTS: MCO - 05

 Particulars Present Level Proposed Level Sales Less: Variable Cost 240000 144000 280000 (240000+40000) 168000(144/240*280000) Contribution Less: Fixed Cost 96000 26000 112000   30000  (26000 + 4000) Net Profit Before Tax Less: Tax @40% 70000 28000 82000 32800 Net Profit After Tax 42000 49200

(i) New Break Even Point = (Fixed Costs/Contribution)* Sales

= (30000/112000) * 280000

= 75000

(ii) Sales to earn Present Level of Profit i.e. 70000

Sales = (Fixed Cost + Profit)/ P/V ratio

= (30000 + 70000) / 40%

= 100000 / 40%

= 250000

Here, P/V Ratio = (Contribution / Sales) * 100

= (112000/280000) * 100

= 40%

(iii) Sales to earn Expected Profit i.e. 80000 (70000 + 10000) on Proposed Investment

Sales = (Fixed Cost + Profit)/ P/V ratio

= (30000 + 80000) / 40%

= 110000 / 40%

= 275000

(iv) Maximum Profit Potential after tax and Plant Expansion

 Particulars Proposed Level Sales Less: Variable Cost 280000 (240000+40000) 168000(144/240*280000) Contribution Less: Fixed Cost 112000   30000  (26000 + 4000) Net Profit Before Tax Less: Tax @40% 82000 32800 Maximum Profit Potential 49200