Pulkit animal care society operates as a NPO providing veterinary services. AS a Non-profit it refers excess of revenue over cost as surplus and cost of excess of cost over revenue as a deficit. Pulkit animal care society charges Rs 250 per service. The variable cost of a service on an average is Rs 50.Fixed costs are Rs 1.2 lakh annually. a. What is the break-even point for Pulkit Animal Care society? b. Pulkit Animal care Society expects 1000 animal visits this year. Will it operate at a surplus or deficit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
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Pulkit animal care society operates as a NPO providing veterinary services. AS a Non-profit it refers excess of revenue over cost as surplus and cost of excess of cost over revenue as a deficit. Pulkit animal care society charges Rs 250 per service. The variable cost of a service on an average is Rs 50.Fixed costs are Rs 1.2 lakh annually.

a. What is the break-even point for Pulkit Animal Care society?

b. Pulkit Animal care Society expects 1000 animal visits this year. Will it operate at a surplus or deficit?

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ISBN:
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OpenStax College