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Paper / Subject Codę: 71613 / Accmintancy : Paper II * Advanced Cosi Accounting.

Oil Rs KM) per week

Drivcr’s wagcs Rs 400 per wcck

Rcpairs Rs KM) per wcck

Garage rent Rs 150 per week

Cost of lorry Rs 4, 50.000 (cxcluding tyres)

I.ifc of lonry 80.000 kms Insurance Rs 6.500 p.a Cost of tyres Rs 6.250 Life of tyres 2.500 kms

Estimated Scrap value of lorry at the end of its life Rs 50.0(X)

Vehicle licence cost Rs 1.300 p.a Othcr ovcrhcad cost Rs 41.600 p.a Tire lorry operates on a Five-day-week You arc requircd to

a) Show the statemeni of the total cast of operatmg the vehicle for the 4 wcekly periods.

analyscd into running costs and fixed costs. hi Calculate vehicle cost per km. and per tonne km.

Arun Ltd . and Vanin Ud . arc manutacturing the same product.    (16)

The profit and loss dctail* arc as under:

Particulars 'V .	Arun Ltd . Rs	Varun Lid . Rs
Sales ^ Less: Variable cost Less: Fixcd Cost Profit	10,00,000 4.00. 000 6.00. 000 ŁOtLOOO 3.00.000	10.00.000 6.00.000 4.00. 000 msm 3.00. 000

You arc rcquired to :

1.    Calculate Contribulion / Sales ratio for cach company .

2.    Calculate BEP for cach company .

3.    Profits of each company if Sales inerease by 20%

4.    Profits of each company if sales decrea.se by 20%.

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