Sony Electronics LLC, who is a leading TV manufacturing company in Oman. Mr. Yaqoob, who has...
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Sony Electronics LLC, who is a leading TV manufacturing company in Oman. Mr. Yaqoob, who has recently joined as a production supervisor would like to calculate the total cost of producing 2000 TV's in a month. Records show that material cost of producing one TV is RO 54 while labor cost per TV is RO 4 and other manufacturing cost is also RO 8 per unit. The company pays RO 5550 per month as a rent and Mr. Yaqoob found that there are no other expenses. a) Find out the sales revenue by selling 2000 TV's if Sony electronics rate of mark up is 20% on cost. b) What do you mean by economies of scale? Will it be applicable if the company increases the production capacity from 2000 TV to 3000 TV's per month? Discuss analytically (3+2=5 Marks) Activate Window Sony Electronics LLC, who is a leading TV manufacturing company in Oman. Mr. Yaqoob, who has recently joined as a production supervisor would like to calculate the total cost of producing 2000 TV's in a month. Records show that material cost of producing one TV is RO 54 while labor cost per TV is RO 4 and other manufacturing cost is also RO 8 per unit. The company pays RO 5550 per month as a rent and Mr. Yaqoob found that there are no other expenses. a) Find out the sales revenue by selling 2000 TV's if Sony electronics rate of mark up is 20% on cost. b) What do you mean by economies of scale? Will it be applicable if the company increases the production capacity from 2000 TV to 3000 TV's per month? Discuss analytically (3+2=5 Marks) Activate Window
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Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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