Corporate Practice BD

হালনাগাদ (৩০ জুন ২০২৬): করবর্ষ ২০২৬–২০২৭ ও ২০২৭–২০২৮-এর জন্য ব্যক্তিশ্রেণির আয়কর হার

আয়কর আইন, ২০২৩ (২০২৩ সালের ১২ নং আইন)-এর ধারা ২(৬৯) অনুযায়ী, একজন ব্যক্তির (অনিবাসী বাংলাদেশি ব্যক্তি এবং হিন্দু অবিভক্ত পরিবারসহ) মোট আয়ের (Total Income) ওপর নিম্নোক্ত হারে আয়কর নির্ধারণ করা হবে।

Individual income tax is a tax imposed by governments on the income earned by individuals, including wages, salaries, bonuses, rental income, investment gains, and other forms of income. It is one of the primary sources of revenue for governments to fund public services and programs.

The tax rates, regulations, and structures can vary widely from one country to another.

Updated (30 June 2026) Individual Income Tax Rates for the Assessment Years 2026–2027 and 2027–2028:

Under the Income Tax Act, 2023 (Act No. 12 of 2023), in accordance with Section 2(69), the income tax payable by an individual (including a non-resident Bangladeshi individual and also a Hindu undivided family) shall be calculated on their Total Income at the following rates:

AY-2026-2027 and 2027-2028

Income Slab Rate of Tax
Up to BDT 400,000 Nil
On the next BDT.3,00,000 10%
On the next BDT.4,00,000 15%
On the next BDT.5,00,000 20%
On the next BDT.20,00,000 25%
On the remaining balance 30%
Provided that—
(a) For a resident individual, the tax-free income threshold shall be Tk. 400,000.
(b) For a female taxpayer and a taxpayer aged 65 years or above, the tax-free income threshold shall be Tk. 450,000.
(C) Persons with Disabilities and Third Gender Taxpayers: The tax-free income threshold shall be Tk. 5,25,000.
(d) For a gazetted freedom fighter and a person with a disability, and Gazetted July -2024 Warriors, the tax-free income threshold shall be Tk. 5,50,000.
(e) Where a taxpayer has one or more children with disabilities, the tax-free income threshold shall be increased by Tk. 50,000 for each such child.
(f) These benefits shall also apply to:
A Non-Resident Bangladeshi (NRB); and
A person of Bangladeshi origin.
(f) After allowing the tax-free income threshold, the minimum tax payable shall be Tk. 5,000. However, for a new taxpayer, the minimum tax payable shall be Tk. 1,000.
( #30 #2026) #2026–2027 #2027–2028:

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অগ্রাধিকার শেয়ার (Preferred Shares) কী? বিভিন্ন প্রকার ও বাস্তব উদাহরণসহ বিস্তারিত আলোচনা

অগ্রাধিকার শেয়ার (Preferred Shares) হলো এমন এক ধরনের শেয়ার, যা সাধারণ শেয়ারের তুলনায় লভ্যাংশ (Dividend) এবং কোম্পানি বিলুপ্তির সময় মূলধন ফেরত পাওয়ার ক্ষেত্রে অগ্রাধিকার প্রদান করে। নির্দিষ্ট হারে লভ্যাংশ পাওয়ার সুযোগ থাকলেও সাধারণত এ ধরনের শেয়ারধারীদের ভোটাধিকার সীমিত থাকে। কোম্পানির মূলধন সংগ্রহ, বিনিয়োগ ঝুঁকি হ্রাস এবং স্থিতিশীল আয়ের জন্য Preferred Shares গুরুত্বপূর্ণ ভূমিকা পালন করে। এই নিবন্ধে অগ্রাধিকার শেয়ারের সংজ্ঞা, বৈশিষ্ট্য, বিভিন্ন প্রকার এবং বাস্তব উদাহরণসহ বিস্তারিত আলোচনা করা হয়েছে।
Characteristics of Preference Shares:
Fixed Dividend:
Preference shareholders receive a fixed rate of dividend, which is specified when the shares are issued. This dividend is paid out before any dividend is paid to common shareholders.
Preference in Dividend Payments:
In case of dividend distribution, preference shareholders are entitled to receive dividends before common shareholders. If the company cannot pay dividends in a particular year, the unpaid dividends may accumulate (cumulative preference shares) or be forfeited (non-cumulative preference shares), depending on the type of preference shares issued.
Priority in Liquidation:
In the event of liquidation or winding up of the company, preference shareholders have a higher claim on the company's assets compared to common shareholders. They receive their capital back before common shareholders, but after creditors and bondholders.
No Voting Rights:
Generally, preference shareholders do not have voting rights in the company's affairs, except in special circumstances or as specified in the terms of the shares.
Convertible or Non-Convertible:
Preference shares can be either convertible or non-convertible. Convertible preference shares give the shareholder the option to convert their preference shares into a specified number of ordinary shares after a predetermined period or under certain conditions.
Redeemable or Irredeemable:
nbsp;Some preference shares may be redeemable, meaning the company can buy them back after a specified period, often at the discretion of the company. Irredeemable preference shares, on the other hand, do not have a maturity date and are treated as permanent capital.
Advantages of Preference Shares:
Stable Income:
Preference shareholders receive a fixed dividend, providing a stable income stream that is attractive to income-oriented investors.
Priority in Liquidation:
Preference shareholders have a higher claim on company assets in case of liquidation, which enhances their security compared to common shareholders.
Flexibility for Issuing Companies:
Issuing preference shares allows companies to raise funds without diluting voting control, as preference shareholders typically do not have voting rights.

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ফ্লেক্সিবল বাজেট (Flexible Budget), পরিকল্পনা বাজেট (Planning Budget), স্থির বাজেট (Static Budget) এবং প্রকৃত বাজেট (Actual Budget) কী?

1. Flexible Budget

A Flexible Budget adjusts expenses based on changes in actual revenue or other activity levels. It allows for better variance analysis by comparing actual performance against a budget that reflects the actual level of activity.

Example:01.

ABC Manufacturing has budgeted its variable costs based on the number of units produced.

Budgeted Variable Cost per Unit: $50

Fixed Costs: $100,000

Flexible Budget for Various Production Levels:

Production Level: 1,000 Units 2,000 Units 3,000 Units

Variable Costs: $50,000 $100,000 $150,000

Fixed Costs: $100,000 $100,000 $100,000

Total Budget: $150,000 $200,000 $250,000

Planning Budget:

A Planning Budget (also known as a forecast or static budget) is prepared for a single level of activity and does not change once set. It is often used for strategic planning and longer-term financial projections.

Example:02.

ABC Corporation plans for the next fiscal year assuming a production of 2,000 units.

Estimated Sales: $500,000

Estimated Variable Costs: $100,000

Estimated Fixed Costs: $150,000

Planning Budget:

Sales: $500,000

Variable Costs: $100,000

Fixed Costs: $150,000

Total Costs: $250,000

Projected Profit: $250,000

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Accounting treatment for goodwill- with practical examples:

Goodwill is an intangible asset that arises when one company acquires another for a price higher than the fair value of its identifiable net assets (i.e., assets minus liabilities).
The excess of the purchase price over the fair value of the acquired company's identifiable assets and liabilities is recorded as goodwill.
Here's a breakdown of how goodwill is treated in accounting:

1. Initial Recognition of Goodwill:
Goodwill is recognized in the books only in the context of a business combination.
It is calculated as:
Goodwill=Purchase Price−(Fair Value of Acquired Assets−Liabilities Assumed)
Practical Example:
Let's assume Company A acquires Company B for $10 million. The fair value of Company B's identifiable net assets (assets minus liabilities) is $8 million. The difference between the purchase price and the fair value of the net assets ($10 million - $8 million = $2 million) is recorded as goodwill.

Journal Entry to Record Acquisition with Goodwill:

Dr. Assets (specific assets acquired) $8,000,000
Dr. Goodwill $2,000,000
Cr. Liabilities (liabilities assumed) $X
Cr. Cash or Bank (purchase price paid) $10,000,000

2.Subsequent Measurement (Amortization vs. Impairment):

Goodwill is not amortized but is subject to impairment testing under both IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles).

A. Impairment Testing:
At least annually (or more frequently if there are indicators of impairment), companies must test whether the carrying value of goodwill exceeds its recoverable amount. If it does, an impairment loss is recognized in the profit and loss statement.

Practical Example of Impairment:

Suppose Company A tests its goodwill a year later and finds that the recoverable value of the business unit is $9 million, but the carrying amount (assets plus goodwill) is $11 million. The goodwill is impaired by $2 million ($11 million - $9 million).

Journal Entry for Goodwill Impairment:

Dr. Impairment Loss (in Profit & Loss Statement) $2,000,000
Cr. Goodwill $2,000,000

3. Goodwill in Financial Statements:

Goodwill appears as an intangible asset on the balance sheet. It is not amortized but remains on the balance sheet unless impaired.

Practical Example - Balance Sheet Presentation:

After Company A acquires Company B, and after recognizing the impairment, its balance sheet would show:
Total assets, including goodwill ($8 million identifiable assets + $2 million goodwill)
Impairment loss shown as an expense in the income statement

In Finally:
In accounting, goodwill is initially recorded at its acquisition value and tested annually for impairment. Unlike tangible assets, it is not amortized but instead adjusted if an impairment is found.

- :

Updated Bank Deposit Excise Duty Slabs (FY 2026-27):

Excise Duty Rate in Bangladesh (updated FY 2026-27):
Nowadays, people can maintain different types of bank accounts for personal or business purposes. In Bangladesh's newly approved National Budget for FY2026–27, the government has increased the excise duty exemption threshold on bank deposits from Tk 300,000 to Tk 400,000, providing greater relief to small depositors and encouraging financial inclusion.

Here are the updated Bank Deposit Excise Duty Slabs (FY 2026-27)

Highest Balance(Credit/Debit in (Taka) Excise Duty in (Taka)
From 0-4,00,000 Nil
4,00,001-5,00,000 150
5,00,001-10,00,000 500
10,00,001-50,00,000 3,000
50,00,001-1,00,00,000 5,000
1,00,00,001-2,00,00,000 10,000
2,00,00,001-5,00,00,000 20,000
5,00,00,001 and above 50,000

( - #27):

What Is a Demand Note: Definition & How Does It Work?

A demand note is a type of financial instrument that can be used for borrowing or lending money. Here’s a breakdown of its definition and how it works:

Definition:

A demand note is a promissory note that requires the borrower to repay the lender upon request, rather than on a specified maturity date. This means that the lender can demand repayment at any time, and the borrower must pay the outstanding amount immediately.

How It Works:

Creation:

The borrower and lender agree on the terms of the loan, including the principal amount, interest rate, and any other relevant conditions. This agreement is documented in the demand note.

Repayment Terms:

The note stipulates that the borrower must repay the amount upon the lender's request. There’s usually no fixed repayment schedule, but the lender may specify certain conditions under which they can demand payment.

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: #& ?

কর্পোরেট ফাইন্যান্স ও অ্যাকাউন্টিং পেশায় Ratio Analysis-এর জ্ঞান অত্যন্ত গুরুত্বপূর্ণ।

Ratio Analysis হলো আর্থিক বিবরণীতে থাকা তথ্যের ভিত্তিতে বিভিন্ন আর্থিক অনুপাত (Ratio) গণনা ও বিশ্লেষণের মাধ্যমে একটি প্রতিষ্ঠানের আর্থিক স্বাস্থ্য, লাভজনকতা, তারল্য, ঋণ পরিশোধের সক্ষমতা এবং পরিচালন দক্ষতা মূল্যায়নের প্রক্রিয়া। এটি বিনিয়োগকারী, ঋণদাতা, ব্যবস্থাপনা এবং অন্যান্য অংশীজনকে সঠিক ব্যবসায়িক সিদ্ধান্ত নিতে সহায়তা করে।
Why use Ratio Analysis in corporate Finance?
There are several reasons for applying Ratio analysis within the corporate world. There’s a most investor or financial analysts can easily calculate the company’s financial performance, financial health by scrutinizing past and current financial statements. It helps the CFO of the corporate to research the financial data and take a financial decision effectively. There are some advantages of ratio analysis like-
Advantages of ratio analysis: -
01. Analyzing & comparing Financial performance :-( it helps in comparing the financial performance of two companies.)
02. Recent trend line Analysis :-( Companies trend to use the activity ratio in order to find any kind of trend in the performance.)
03. Operational Efficiency :-( Financial ratio analysis can also help to determine the efficiency of managing the asset and liabilities under the enterprise resource planning (ERP) also.
Limitations of Monetary ratio analysis:-
Financial ratio analysis is quantitative instead of qualitative. It, therefore, doesn't address certain factors which may play an enormous role in determining a company’s prospects. As an example, it cannot analyze the standard of its management.
Types of Ratio analysis
There are many sorts of economic ratios that you just can use for financial performance Measurement of the corporate practice. These are as follows-
Categories under-Liquidity Ratio: -
01. Current Ratio = (Current Assets/Current Liabilities)
02.Quick ratio or Acid test ratio= (current assets – inventory) / current liabilities
03. Cash ratio = Cash and equivalent / Current liabilities
04. Basic liquidity ratio = Monetary assets / monthly expenses
05. Interest Coverage Ratio = Earnings before Interest and Taxes or EBIT/ Interest Expense
06. Operating cash flow ratio = Operating cash flow / Current liabilities
Categories under - Solvency Ratio: -
01. Debt to equity ratio = Long term debt / shareholder’s funds
02. Debt Ratio = Long Term Debt / Capital or Debt Ratio = Long Term Debt / Net Assets
03. Proprietary Ratio = Shareholder’s funds / Capital or Shareholder’s funds / Total Assets
04. Interest coverage ratio = EBIT / interest on long term debt
05. Debt- to -Assets Ratio=Total- Debt /Total-Assets
Categories under-Profitability Ratio: -
01. Gross Profit Ratio = Gross profit / Net sales
02. Operating Profit Ratio = Operating income / Net sales
03 .Net Profit Ratio = net income/ sales
04. Profit Margin Ratio =Net income/net sale.
05. Return on Investment (ROI)= Operating Profit /capital employed) *100
Categories under-Efficiency Ratio:
01. Accounts Receivables Ratio = Net Sales / Average Accounts Receivables
02. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
03. Fixed Asset Turnover = Net sales / Average Fixed Assets
04. Total Asset Turnover = Net sales / Average Total Assets

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ইনভেন্টরি ব্যবস্থাপনার গুরুত্ব (CMA, CA, CIMA ও ACCA শিক্ষার্থীদের জন্য)

ইনভেন্টরি ব্যবস্থাপনা Cost & Management Accounting-এর একটি গুরুত্বপূর্ণ বিষয়। CMA, CA, CIMA ও ACCA শিক্ষার্থীদের জন্য EOQ, Safety Stock, Reorder Level, Maximum ও Minimum Stock Level সম্পর্কে পরিষ্কার ধারণা ব্যয় নিয়ন্ত্রণ, কার্যকর সিদ্ধান্ত গ্রহণ এবং পরীক্ষায় ভালো ফল অর্জনের জন্য অত্যন্ত গুরুত্বপূর্ণ। এছাড়া বাস্তব ব্যবসায়িক সমস্যা বিশ্লেষণ ও সমাধানেও এই জ্ঞান অপরিহার্য।
In inventory management, identifying various stock levels is crucial for ensuring efficient and cost-effective operations. These stock levels help in maintaining the right balance between having enough stock to meet demand and minimizing holding costs. The most commonly identified stock levels are:

1.Economic Ordering Quantity(EOQ):
EOQ=√ 2 X S X D H
Where:
D = Demand for the product (units per period)
S = Ordering cost per order
H = Holding or carrying cost per unit per period

2. Minimum Level:
Re-order level - (Normal consumption x Normal re-order period)
3. Maximum Level :
Re-order level + Re-ordering quantity – (Minimum consumption x Minimum re-order period).

4. Danger Level:
Average Consumption × Emergency Lead Time
5. Re-Ordering Level:
Maximum consumption x Lead time + Safety Stock

6. Safety stock level:
(Maximum rate of consumption - Average rate of consumption) × Lead time

7. Lead Time :
Difference between the period between placing a re-order & receiving period of the inventory.

8. Average Stock Level:
(Minimum Stock Level +Maximum Stock vel) /2

9. Buffer Stock:
Extra stock kept on hand as a precautionary measure against variability in demand or supply chain delays.

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আয়কর আইন, ২০২৩-এর ধারা ১৪৭ অনুযায়ী কর কর্মকর্তাদের ক্ষমতা-করদাতাদের জন্য গুরুত্বপূর্ণ নির্দেশনা
Press Release(date-19.07.2026)

Under the directives of the National Board of Revenue (NBR), special teams of tax officials have been conducting nationwide tax enforcement and verification activities. Therefore, taxpayers and other stakeholders are requested to be aware of the powers and responsibilities of tax officials under Section 147 of the Income Tax Act, 2023. The following matters are highlighted for special attention.

Under Section 147 of the Income Tax Act, 2023, tax officials may take the following actions:

Enter and inspect the premises of any business or economic establishment, including places where business activities are conducted;
Examine and verify books of accounts, registers, bank statements, receipts, and other records relating to the institution's financial transactions;
Inspect computer systems, cloud servers, digital records, or information stored in electronic devices and, where necessary, access such information through passwords or electronic devices;
For the purpose of verifying tax-related information, examine books of accounts, registers, electronic records, and devices, and seize them if necessary;
Make copies of any document, information, or records and use identification marks or official seals on such copies.

Please note that obstructing or interfering with the lawful duties of tax officials is an offence, and Section 147(2) of the Income Tax Act, 2023 provides for penalties in such cases.

All taxpayers are requested to cooperate with tax officials by complying with the relevant legal provisions and by making available accurate information and supporting financial documents.

If you have any questions, concerns, or suggestions regarding the implementation of Section 147, please contact the Section 147 Coordination Committee of the National Board of Revenue via email at: [email protected]

Cost-Volume-Profit (CVP) Analysis Definition -With Practical Examples

"CVP" Stand for Cost volume profit," It is a cost accounting &
Management Technique or tools where as a manger of cost accountant overview whats the changes production volume or sales volume that leads to the changes company's overall profit margin. I means % change in sales volume that result create % change in Contribution margin Simultaneously.Under CVP analysis top authority of the company can take quick decision about the Accept or Reject of the outsider business offer.

There are Three Method of CVP analysis, well known as,

01.The Equation method

02.The contribution margin method

03.The graph Method

04. Linear Equation Method = ( Y = mx +c ),Where, Y=semi variable cost,m=production units,X =variable cost,C= fixed cost which are will be find out in the question.

***Some special question***

01. Sales level, where both Unit are equally profitable(if any) use following technique

Ans:

Sales level of equal profits = Change in fixed cost / Change in CM ratio

2. CVP analysis where sales mix ratio are exist like 3:1 where no exist units sales.

3. Where no mention in the question sales units or variable cost,or sales amount,calculate BEP

01.The Equation method

In -respect to clear concept of Cost-Volume-Profit (CVP) Analysis we should first concern to CVP Relationship In Equation form,like-

Under the Equation form,

01.Profit = (Sales-variable Expense) -fixed expense

02.or Profit= (Sales *PV ratio)-Fixed expense

03.or profit %= CM ratio*M/S Ratio

04.PV Ratio= (C.M per unit/ selling price per unit)*100 [PV ratio=profit volume ratio]

05.or PV ratio=Sales ratio- variable ratio

06.or PV ratio=(Total fixed expense / BEP)*100

07.Sales = Variable expense+ fixed expense+prof

08. Variable Expense = Sales-fixed expense- profit

09. Fixed Expense = sales -variable expense-profit

10. or Fixed Expense = (Sales* C.M ratio) - Profit

Where as ,

11.BEP = Sales-variable Expense-fixed expense = 0

12.or BEP =Total Budgeted Sales-Margin of safety

13.or BEP = Contribution Margin+Profit

14.or BEP TK.= Sales*BEP ratio

15.or BEP Tk.=(Variable expense+Fixed expense )

16.or BEP ratio=100% -M/S ratio

17.or BEP ratio= (BEP /Sales)*100

18. Margin of safety=Total budgeted sales -BEP sales

19.or Margin of safety=(Profit/C.M ratio)

20.C.M Ratio =(C.M per unit/Sales per unit)*100

21.M/S Ratio=(Margin of safety/ sales)*100

22.or M/S Ratio=100%-BEP ratio

As we can see,Required sales for Target profit (before Tax)

23.Target sales unit=( FC+Profit) / C.M per unit

24. Target sales Amount =( FC+Profit) / [1-Variable cost/sales]

25.or, Target sales Amount =( FC+Profit) / [C.M ratio]

As we can see,Required sales for Target profit (After Tax )

26. Target sales unit=( FC+Profit after tax /1- tax rate) / C.M per unit

27. Target sales Amount =( FC+[Profit after tax /1- tax rate] / C.M Ratio)

02.The contribution margin method

28. Selling price per unit =****

Less: Variable cost per unit = (****)

Result, C.M per unit = ***** [C.M=Contribution Margin]

29.C.M ratio= (C.M per unit/selling price per unit)*100

30.or C.M Ratio=(Total Cm/Total sale amount)*100

31. or C.M Ratio=([Sale -VC]/ Sales)*100

32.or C.M Ratio=(100-VC %)

33.BEP in units= (FC /C.M per unit)

34.BEP in Amount =(FC /C.M Ratio)

35. Sales =(C.M+V.C)

36.or, sale = C.M/C.M Ratio

37.or,Sales = (BEP sale/BEP Ratio)

38.or,Sales =V.C/V.C Ratio

39.or,Sales =Total cost +Profit

40.Marginal cost = Prime cost+Variable cost

41.Prime cost = (Direct material cost+Direct labor cost)

Under the Operating Leverage

42.Degree of operating Leverage (DOL) =(Contribution Margin / Net operating Income)

Under the sales mix And Break even Analysis

The sales mix refers to the relative proportion in which a company's products are sold.The sales mix idea is generated for the purpose of earn greatest profit.

Why Sales mix

Most of the company's have many product but they are not equality profitable.That,s why company uses sales mix strategy with the higher C.M product line.

When CVP apply for sales Mix

43. BEP in Unit=(FC/ AV C.M Per unit) [ Where as AV= Average]

44.BEP amount=(FC/AV C.M Ratio )

Let,s start with Practical Example

Practical Example. (01)

The corporate practice bd LTD provide following Information

The corporate practice bd LTD

Contribution Income statement

For the month of January-2022

Total Amount Tk. Per unit

Sales 4000 Units (A) = Tk.10,00,000.000 250.00

Variable expense (B) = Tk.6,00,000.00 150.00

Contribution Margin (A-B) = Tk.4,00,000.00 100.00

Fixed expense (C) = Tk.3,50,000.00 -

Net operating Income(A-B-C) = Tk.50,000.000 -

Requirement

01.BEP In Units & Amount in TK

02.C,M Ratio

03.M/S Ratio

04.Margin of safety

05.Profit

06.DOL(degree of Operating Leverage)

07.Profit % on Sales

08.BEP Ratio

09.IF the company increase sales TK. 50,000.00 without effecting any changes in fixed expense .what are net operating income & sale volume increase by the decision (use only C.M approach.

10. If the company want to bid the competitor, price decrease to TK.245 per unit where as sales volume increase to 6000 units. As a result sales commission will be payable @5% of Excess sales value.Under this situation -Price decrease is the Good decision to the company? if there is no others changes. (Use C.M Approach) only

11. What are company,s overall profit when the company increase sale volume up to 6000 units?

Solution:

To solution of the above requirement we need to some calculation are mention bellow

Note-01.C.M per unit =sales per unit-V.C per unit

=(250.00-150.00)

=100.00

C.M Amount Tk. = 100 per unit*4000 units

= Tk.4,00,000.000

Note-02. C.M Ratio =(C.M Per unit/Sales per unit)*100

=(100/250)*100

= 40%

Note-03.Total Sales Amount =Sales units@ per unit

= 4000 [email protected] unit

=Tk.10,00,000.000

Note-04.New CM =(New selling price- V.C)

=( 245-150)=95.00 per unit

Note-05.New C.M Ratio =(95/245)*100

= 38.7755%

Note-06. Excess sales Value=(6000 units-4000 units)=2000 units

=2000 units@245 per unit

=Tk.4,90,000.00

Note-07. So Sales commission=(Excess sales Value@5%)

= Tk.4,90,000.00@5%

=Tk.24,500.00

Requirement : 01.

BEP in Units & Amount in TK

We know that ,

BEP=(Fixed expense/C.M per unit)

= (Tk.3,50,000.00/100 per unit)

=3500.00units

Amount.Tk. =3500units@250 per units

=Tk.8,75,000.000

Requirement : 02.

C.M Ratio =(C.M Per unit/Sales per unit)*100

=(100/250)*100

= 40%

Requirement : 03.

M/S Ratio=(Total sales Amount = BEP sales Amount)/Sales Amount

= (10,00,000.000-8,75,000.000)/10,00,000.00*100

=12.50% Requirement : 04

Margin of safety= (Total sales Amount = BEP sales Amount)

= (10,00,000.000-8,75,000.00

= Tk.1,25,000.000

Requirement :05

Profit= (Sales*C.M ratio)- fixed expense

=(10,00,000.000*40%)-3,50,000.000

= Tk.50,000.00 (proved)

Requirement 06

Degree of operating Leverage(DOL)=(Contribution Margin / Net operating Income)

= (4,00,000.00/50,000.000)

= 8 times

Requirement :07

Profit % on Sales= (Profit/ sales)

= (50,000 /10,00,000)*100

= 5%

Requirement :08

BEP ratio=100% -M/S ratio

=100%-12.50%

= 87.50%

Sales= (8,75,000 / 87.50)*100

= Tk. 10,00,000.000 (Proved)

Requirement :09

IF the company want increase sales amount TK. 50,000.00 without effecting any changes in fixed expense.

Then ,Net net operating income increase =(Tk.50,000.00*C.M Ratio)

=(Tk.50,000.00*40%)

=Tk.20,000.000

or ,Sales volume Increase = (Tk.50,000.000/ selling price per unit)

= (Tk.50,000.000/ 250 per unit)

= 200 units

or Net Profit increase=200units@100 C.m per unit)= Tk.20,000.000 (Proved)

Requirement :10

Company Earn excess profit=(Excess sales Value@New C.M Ratio)[Note-06]

=(4,90,[email protected]%)

=Tk.1,90,000.000 (round)

Less: Sales commission =(Tk.24,500.000) [Note-07]

Net Excess profit earn=1,65,500.00 is good decision for the company as a whole..

Requirement :11

Calculation of company overall profit

Sale value =(sales unit@ new-selling price per unit) Note-04.

= (6000units@245per units)

=Tk.14,70,000.000

Less: V.C(6000units@150 per unit)=Tk.(9,00,000.000)

Less" sales commission=Tk.(24,500.000 )[Note-07]

Gross Margin=5,45,500.000

Less:Fixed expense=Tk.(3,50,000.000 )

Company's overall net profit=1,95,500.000

Practical Example. (02) (under Sales Mix CVP analysis) (CMA-Jan-2023)

ABC company sells two products , product- A priced at $400 where as Product -B priced at $ 800.The variable cost per unit are $325 for product-A & $600 for product-B.Total fixed expense is $96250 .ABC company expected sales Mix is 03 for product-A & 02 for product-B

Requirement:

01.From a package of product -A & product -B based on the sales mix, and calculate the package contribution margin.

02.Calculate the break -even point in units for the two product-A & Product-B

03.Check your answers by preparing a contribution margin income statements.

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