ENTREPRENEURSHIP

CLASS XII
NUMERICAL PRACTICE MATERIAL

TOPIC 1: BREAK EVEN POINT (SINGLE & MULTIPLE PRODUCT)

Q.1. Bright lights Pvt. ltd. started a business of making three varieties- LED lights, LED
bulbs, CFL bulbs. From the following information calculate Breakeven for the company
in units.
LED lights LED bulbs CFL bulbs
Sales Price 80 45 60
Variable Cost 40 15 20
Sales mix 50% 20% 30%

Fixed costs for the production process is 76,000.

Q.2. Vikram ltd., manufactures leather bags and wallets. The fixed cost is Rs. 25,00,000. The
sales and variable cost is as under:

Selling Price Variable cost

Leather bags Rs.2500 Rs. 1500

Wallets Rs. 2000 Rs.1000

They were able to sell 100 leather bags and 150 wallets.

Q.3. The following information is related to the sales mix for products- Aprons, Buckets and
Cutlery.

Product Apron Bucket Cutlery

Sales price @ unit Rs.15 Rs.21 Rs.36
Variable cost @ unit Rs. 9 Rs.14 Rs.19
Sales Mix Percentage 20% 20% 60%

Total fixed cost- Rs.40,000.

Calculate Break Even Point in units as well as in Rupees.

Q.4. The following information is related to the sales mix for products- bubblegum and Candy.

Product Bubblegum Candy

Sales price @ unit Rs.100 Rs.75
Variable cost @ unit Rs. 50 Rs.25
 Sales 1000 units 500 units

Total fixed cost- Rs.5,00,000.

Calculate Break Even Point in units as well as in Rupees.

Q.5. Fixed Cost incurred is 1,20,000/- , Sales turnover is 3,00,000/-, Raw Material is
50,000/-, Wages is 20,000/- and Packaging is 30,000/-. the company produces and
sells 1,00,000/- pieces. Calculate the BEP in units and sales.

Q.6. ‘Good wash’ are manufacturers of different sizes of fully automatic washing machines
marked as ‘small’, ‘medium’, ‘large’ and ‘industrial’. From the information given
below, calculate the ‘Break-Even Quantity’ of the washing machines manufactured per
month.
Information:
Size of machine. Unit Selling Price Unit variable cost Fixed exp
Small Rs.10,000 Rs. 3000 Rs.35,000
Medium Rs.15,000 Rs.8000 Rs.35,000
Large Rs.20,000 Rs.13,000 Rs.70,000
Industrial Rs.35,000 Rs.20,000 Rs.1,50,000

Q.7. Hasth Shilp, a co-operative society in Kohima, manufactures Wallets and Sling Bags of
Jute Cloth. Fixed Cost for the entire production is Rs. 3,90,000 per year.
Wallets Sling Bags
Sales in Unit 1500 4500
Selling Price /Unit Rs. 200 Rs. 500
Variable Cost /Unit Rs. 100 Rs. 360
Calculate the Break Even point for Wallets and Sling Bags.

Q.8. Treat Foods Ltd. started a business of making three types of sauces- Soya Sauce,
Green Chilli Sauce, Tomato Sauce. Fixed costs are 38,000. Sales revenue and variable
costs per unit are as follows:
Soya Sauce Green Chilli Sauce Tomato Sauce
Sales Price 80 45 60
Variable Cost 40 15 20
Bottles Sold 100 40 60
From the following information calculate:
a. Weighted Contribution margin per unit.
b. Breakeven point-total and per product

Q.9. ‘Nomy India Ltd.’ are the producers of different sizes of televisions. From the
information given below, calculate the ‘Break-Even Quantity’ of the T.V. sets
manufactured per month.
Information:
Size of T.V. Unit Selling Price Unit variable cost Fixed expense
24” Rs.5000 Rs. 2000 Rs.4000
32” Rs.10,000 Rs.7000 Rs.6000
 36” Rs.15,000 Rs.12,000 Rs.8000
42” Rs.20,000 Rs.14,000 Rs.9000 (2015)

Q.10. Victor Ltd. is the manufacture of Stationery items. Their main items were Pens,
Pencils and erasers. Fixed cost of production was Rs.1,53,600. Sales price and
variable cost per unit were as follows:
Pens Pencils Erasers
Sales price 126 216 90
Variable cost 84 114 54

Sales mix percentage of three products was 20%, 60% and 20% respectively. Find out
the break-even point in units.

Q.11. ‘Hi Fi company is the manufacturer of school uniforms. Their main items were shirts,
pants and socks. Fixed cost of production was Rs.1,53,600. Sale price and variable price
per unit are as follows:
Shirt Pants Socks
Rs. Rs. Rs.
Sale Price 126 216 90
Variable Cost 84 114 54

Sales mix percentage of three products was 20%, 60% and 20% respectively.
Find out the break-Even-Point in units and rupees.

TOPIC 2: ECONOMIC ORDER QUANTITY

Q.1. ‘Refreshing Center’a sweet shop sells 3,000 bottles of flavoured milk per year. Cost of
one milk bottle is Rs. 60. Holding cost per annum is Rs.12. Ordering cost is Rs.500 per
order. Calculate the Economic order quantity.

Q.2. Annual quantity of cakes sold by the cake shop is 2000 at the rate of Rs.100 / month.
Cost of placing an order and receiving goods is Rs.200/ order. Inventory holding cost
is Rs.20 @ annum.Calculate the EOQ.

Q.3. A bakery sells - 30,000 cakes per year. Purchase cost is Rs. 2 per cake; Holding cost
is – 20% of the purchase cost; Ordering cost isRs.15. Calculate EOQ.

Q.4. Annual quantity of Books sold by the stationery shop is 1200 at the rate of Rs.100 /
month. Cost of placing an order and receiving goods is Rs.500/ order. Inventory
holding cost is Rs.30 / annum. Calculate Economic Ordering Quantity.

Q.5. A company uses 2500 units of a material per month. The cost of placing an order is
rupees 150. The cost per unit is rupees 20. The carrying cost of inventory is 20% pa.
Calculate the cost of placing the order if EOQ is 1500 units.
Q.6. Sudharshan Water Works,Jaipur, manufactures water consumption indicators(Water
Meters). For that it needs valves which they order from Nut Bolts Ltd. The SKU of
valves is 60,000 valves. Purchase cost is Rs. 3 per valve, holding cost is 20% of the
purchase cost. Ordering cost is Rs. 20.What should be the EOQ( Economic Order
Quantity) of valves for Sudharshan Water Works.

Q.7. Calculate the EOQ from the following information.

a. Annual consumption – 120 units
b. Cost of placing an receiving an order – Rs. 20
c. Price per unit – Rs. 100
d. Storage cost as percentage of average inventory - 12%

Q.8. ‘The Fancy Store’ a readymade garments retail shop sold 8,000 shirts at Rs.400
per shirt during the year ended 31st March, 2014. Cost of placing an order and
receiving goods is Rs.2000 per order. Inventory holding cost is Rs.500 per year.
Calculate the ‘Economic Order Quantity’ for ‘The Fancy Store’.(2015)

Q.9. ‘The Shop’ a readymade garments retail shop sold 5,000 shirts at Rs.200 per shirt
during the year ended 31st March, 2014. Cost of placing an order and receiving
goods is Rs.1000 per order. Inventory holding cost is Rs.250 per year. Calculate
the ‘Economic Order Quantity’ for ‘The Shop’.(2015)

Q.10. Calculate the annual holding cost per unit if the cost of placing an order and receiving
goods is Rs.50 per order and Economic Order Quantity is 30 units per order. Annual
demand is estimated to be 270 units.

TOPIC 3 : RETURN ON EQUITY (ROE) & RETURN ON INVESTMENT (ROI)

Q.1. Meenu started her boutique in Lucknow in the name of ‘La Beautire’ by spending
Rs.30,00,000. She invested Rs.10,00,000 of his own and took a loan of Rs.20,00,000
from SBI @ 6% per annum. Her monthly sales revenue is Rs.18,00,000 and cost of
goods sold is Rs.8,00,000. She pays monthly salary of Rs.3,00,000 to her employees.
The tax rate is 25%.
Calculate Return on investment .

Q.2. Raj singh has started a restaurant on a National highway in the name of ‘DesiDhaba’ by
spending Rs.25,00,000. He invested Rs.10,00,000 of his own and took a loan of
Rs.15,00,000 from Dena Bank @ 6% per annum. His monthly sales revenue is
Rs.17,00,000 and cost of goods sold is Rs.9,00,000. He pays monthly salary of
Rs.3,00,000 to his employees. The tax rate is 25%.
You are required to calculate:
(a) Return on investment and
(b) Return on Equity for Raj Singh.
Q.3. Calculate Return on Investment of Victory ltd. The company started with a Equity
shares- Rs.2,00,000; preference shares- Rs.3,00,000; reserves- Rs.50,000; they had
purchased 150 steel tables @Rs.3500 per table. They could however only sell 120
tables @ Rs.4250 per table. They incurred the following monthly expenditure:
Salary –Rs.4000; advertisement-Rs.1000; depreciation-Rs.450.
Tax to be calculated @10%

Q.4. Calculate Return on Investment. The company had the following:

Equity shares: Rs. 1,00,000; Preference Shares Rs.2,50,000; Loan @ 10% Rs. 5,00,000;
Debentures Rs. 2,50,000. His monthly sales revenue was Rs. 12,00,000; Cost of goods sold
was Rs.8,50,000; He pays monthly salary of Rs. 20,000 to his employees. Tax rate is 20%.

Q.5. Calculate return on investment of S ltd. They started their business with Rs. 40,00,000 of
which 25,00,000 was his own money and Rs.15,00,000 from the bank @ 8%. His monthly
sales revenue was Rs.9,00,000 and cost of goods sold was Rs.5,00,000 They have incurred the
following expenditure on a monthly basis:
Rent- 10000; advertisement – 2000
Tax to be calculated @10%

Q.6. From the following information, calculate ‘Return on Equity’:

Capital Rs. 6,00,000
10% Loan Rs. 2,00,000
Net profit before interest Rs.1,40,000. Also, state what is this return on rupees per lakh
of equity?

Q.7. Harsha started her herbal beauty products shop in Chandigarh with a capital of 9,00,000.
She took loan of 5,00,000 from the State Bank of India at 9% p.a. interest. During the
year ended 31st March, 2016 her sales were 20,90,000 and the cost of goods sold was
15,30,000. She paid monthly rent of the shop 11,000 and a monthly salary of 25,000 to
the employees. The tax rate is 30%. Calculate the return on equity.

Q.8.

TOPIC 4 : UNIT PRICE, UNIT COST, GROSS MARGIN/ PROFIT MARGIN

Q.1. A Beauty parlor had varying number of customers during 5 weeks. This information
and the total weekly billing are in the following table. What are the Unit of sale and the
Unit Price in this case? If the cost of goods sold or variable cost is 60% of the sale price,
calculate the Unit Cost and the Gross Margin per Unit of Sale.

Week No. Of Customers Average Amount Billed

( ) Per Customer
10 100
1
17 85
2
13 71
3
22 231
4
18 175
5
80
Total

Q.2. A hotel had varying number of guests during five weeks. The information regarding the
number of guests and the average weekly billing is presented in the following table:
Week No. of Guests Average Billed amount
1. 240 300
2. 120 410
3. 140 292
4. 160 442
5. 180 480

What is the ‘Unit of Sale’ and ‘Unit price’ in this case? If the cost of goods sold or
variable cost is 60% of the sale price, calculate the ‘unit cost’ and the ‘gross profit’.

Q.3. Number of people who took their meal at Sree Dham restaurant and average billing for each
of the 5 weeks are given in the following table. What are the “unite of sale” and the unit price
in this case if the variable cost is 40% of the sale price, calculate the unit cost and gross
margin per unit of sale.

Week No. of person taking meal Average (Rs) amount

billed
1 300 120
2 340 200
3 250 140
4 450 190
5 210 90
Q.4. Number of people who took their coffee and total billing for each of the 5 weeks are given in
the following table. What are the “unite of sale” and the unit price in this case if the variable
cost is 60% of the sale price, calculate the unit cost and gross margin per unit of sale.

Week No. of person taking meal Total billed (Rs)

1 250 13000
2 300 15900
3 600 32600
4 450 23000
5 150 8400

Q.5. A Courier-Service company 'Speed-Express' had a varying number of customers

during five weeks. The information regarding the number of customers and the
average weekly billing is presented in the following table. What is the 'unit of sale'
and 'unit-price' in this case? If the cost of goods sold or variable cost is 60% of the
sale price calculate the 'Unit-Cost' and the 'Gross-Margin' per unit of Sale.
Week No. Of Customers Average Amount Rs. Billed per
costomer
1 20 200
2 34 170
3 26 142
4 44 262
5 36 350
Total 160
Q.6. ‘H.L. Chemist’ sells medicines at a discount of 5% on list price. On 1.3.2017
medicines as per details given below were sold by ‘H.L.Chemist’.
No. of customers Per customer billed amount ()
50 340
45 370
35 650
30 800
25 975
Calculate the average amount of medicines sold per customer.
Q.7. ‘Ayush Generic Medicines,’ a chemist shop sells generic medicines. On 15.02.2016 medicines
as per the details given below were sold :

No. of customers Per customer billed amount

15 370
20 430
45 500
25 1000
95 1200
Calculate the average amount of medicines sold per customer.