Problem:
A utensil-manufacturing firm produced and sold 500 utensils in the month of September 2013. The cost and revenue figures for the month for the month of September 2013 are given below:
- Direct material = Rs. 10,00,000
- Indirect material = Rs. 30,000
- Direct labour = Rs. 5,00,000
- Indirect labour = Rs. 30,000
- Fixed FOH = Rs. 40,000
- Variable FOH = Rs. 5,00,000
- Revenue = Rs. 25,00,000
Question: Find the contribution margin and the breakeven monthly number of utensils
Note: Explain all steps comprehensively.