Introduction

Example 1.1 Page 10

In [3]:
#initialisation of Variable
FC=2000000.0;#in Rs
v=100.0;#in Rs
s=200.0;#in Rs
Q=60000.0;#in units

#Part a 
# calculation
BEQ=FC/(s-v);#in units

#result
print "Break even quantity in units : ",round(BEQ,3)

#Part b 
#calculation
BES=FC*s/(s-v);#in Rs

print "Break even sales in Rs. : ",round(BES,3)

#Part c 
#calculation
Con=s*Q-v*Q;#in Rs
Mos=Q*s-BES;#in Rs

#result
print "Contribution in units : ",round(Con,3)
print "Margin of safety in Rs. : ",round(Mos,3)

Break even quantity in units :  20000.0
Break even sales in Rs. :  4000000.0
Contribution in units :  6000000.0
Margin of safety in Rs. :  8000000.0

Example 1.2,Page 12

In [5]:
#initialisation of variable
FC=25000.0;#in Rs
v=45000.0;#in Rs
s=120000.0;#in Rs

#Part a 
#calculation
Con=s-v;#in Rs

#result
print "Contribution in Rs  ",round(Con,3)

#Part b 
#calculation
Prof=Con-FC;#in Rs

#result
print "Profit in Rs  ",round(Prof,3);

#Part c 
#calculation
PVratio=Con*100.0/s;#in %
BEP=FC*100.0/PVratio;#in Rs

#result
print "BEP in Rs ", round(BEP,3)

#Part d 
#calculoation
MS=Prof*100/PVratio;#in Rs

#result
print"M.S. in Rs  ", round(MS,3)

Contribution in Rs   75000.0
Profit in Rs   50000.0
BEP in Rs  40000.0
M.S. in Rs   80000.0

Example 1.3 Page 13

In [7]:
#initialisation of variable
FC=15000.0;#in Rs
v=35000.0;#in Rs
s=80000.0;#in Rs

#Part a 
#calculation
Con=s-v;#in Rs

#result
print "Contribution in Rs", round(Con,3);

#Part b 
#calcualtion
Prof=Con-FC;#in Rs

#result
print "Profit in Rs ", round(Prof,3)

#Part c 
#calculation
PVratio=Con*100/s;
BEP=FC*100/PVratio;#in Rs

#result
print "BEP in Rs  ",round(BEP,3)

#Part d 
#calculation
MS=Prof*100/PVratio;#in Rs

print "M.S. in Rs",round(MS,3);

Contribution in Rs 45000.0
Profit in Rs  30000.0
BEP in Rs   26666.667
M.S. in Rs 53333.333