FIN312 Financial Management

Financial ManagementTU Board 2023

Kathmandu toy manufacturing company expected to break even on an accounting basis in its third year. Sales for the third year are projected at 10,000 units. The selling price of the toy is Rs 30 and…

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Kathmandu toy manufacturing company expected to break even on an accounting basis in its third year. Sales for the third year are projected at 10,000 units. The selling price of the toy is Rs 30 and the variable is Rs 18 each. Installed fixed assets including plant and machinery, furniture, and fixtures amount Rs 80,000, which are depreciated straight-line basis in five years. What will be fixed costs without depreciation? What is its cash break-even point in units?

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