
Algebra PreAlgebra and Basic Algebra Math Forum 
 LinkBack  Thread Tools  Display Modes 
February 8th, 2012, 02:58 PM  #1 
Newbie Joined: Feb 2012 Posts: 2 Thanks: 0  Financial and Management Accounting
Q4. Given variable cost Rs.5,00,000. Fixed cost Rs.3,00,000. Net profit Rs.1,00,000. Sales Rs.10,00,000. Find (a) MCSR (b) BEP (c) Profit when sales amounted Rs.12,00,000 (d) sales required to earn a profit of Rs.2,00,000. Hint: Your answers should match this (a)600000 ; (b) 600000; (c) 600000 ; (d) 1000000 Can anyone answer this question plz 
February 12th, 2012, 06:44 PM  #2 
Senior Member Joined: Apr 2011 From: USA Posts: 782 Thanks: 1  Re: Financial and Management Accounting That's the easy way, but if the class is more "formula" oriented, break even is also: where P is the sales price per unit and V is the variable per unit. It would also help to know the contribution margin statement: Sales Variable = Contribution Margin  Fixed =Operating Profit The sales, variable and contribution margin can all be done per unit or in total, depending on what information you have. Remember that break even means 0 profit, therefore at break even, contribution margin has to equal fixed costs.  Can be done in units or in totals, just be consistent. When using the contribution margin statement to solve, you'll generally have to utilize the contribution margin ratio. Keep in mind that sales and variable costs are going to vary with production level, but the ratio between them does not change. So once you have that ratio, you can keep using it. (Unless a problem specifically tells you something has changed.) You can do target profit in the contribution margin statement by filling in "operating profit" with your desired profit and working backwards up the statement. That's a lot of information for you to work with. Please make some attempt at doing it, and if you'll post that I'll see how you're doing. (Oh, and I don't know what MCSR means. Not familiar with that abbreviation.) 
February 14th, 2012, 04:48 PM  #3 
Global Moderator Joined: Dec 2006 Posts: 16,775 Thanks: 1234 
MCSR means marginal contribution sales ratio.

February 15th, 2012, 04:52 AM  #4 
Senior Member Joined: Apr 2011 From: USA Posts: 782 Thanks: 1  Re: Financial and Management Accounting
Well, that meant zip to me, so I had to go hunt it down. We call it a contribution margin ratio in these here parts. almazz, these are all basic equations. And while looking up what MCSR meant, I found this thing: http://www.websukat.com/SMUBooks/Finan ... alysis.pdf Exact same problem (it's even #4), with different numbers. And all the equations are in there. If you don't understand what something means, ask. If all you want is the "answers" you can plug in and solve it just as well as we can. Not to mention the answers are in the back of the thing. 

Tags 
accounting, financial, management 
Search tags for this page 
mcsr accounting,profit/MCSR =,Mcsr full form,what is the full from of mcsr,what is the full form of mcsr,fulk form of mcsr in amanagemwny,mcsr fullform,mcsr in accounting,mcsr full form in accounting,mcsr management accounting
Click on a term to search for related topics.

Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
management math  zy5916  Algebra  3  November 19th, 2013 09:44 PM 
Financial and Management Accounting  almazz  Algebra  1  February 12th, 2012 06:29 PM 
Data Management Help Please  gaz  Algebra  4  November 25th, 2010 12:11 AM 
Data Management Questions  help!  kbeanz  Algebra  2  September 5th, 2010 10:27 PM 
financial accounting  jeanie  New Users  0  December 6th, 2006 03:37 PM 