Problem 1
| |SP ($) |Vat % |Margin % |Cost ($) |
| |(vat inclusive) |Markup |Markup |To be calculated |
|1 |18 |90 |10 | |
|2 |1700 |325 |100 | |
|3 |50 |0.5 |5 | |
|4 |100 |10 |10.10 | |
Problem 2
Total Fixed Expenses = $ 75,000 / year
Selling Price (with Vat) = $ 490 per unit
VAT = 40%
Variable Cost = $ 290 per unit
Calculate the BEP and the Break Even sales
Solution : Problem 1
| |SP ($) |Vat % |SP |Margin % |Cost ($) |
| |(vat inclusive) |Markup |Without Vat |Markup |To be calculated |
|1 |18 |90 |18/1.9 = |10 |9.4736/1.1 = |
| | | |9.4736 | |8.612 |
|2 |1700 |325 |1700/4.25 = |100 |400/2 = |
| | | |400 | |200 |
|3 |50 |0.5 |50/1.005 = |5 |49.7512/1.05 = |
| | | |49.7512 | |47.38 |
|4 |100 |10 |100/1.1 = |10.10...