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A factory is currently running at 50% capacity and produces 2,000 units at a cost of RM360 per unit as per the details listed below:
A factory is currently running at 50% capacity and produces 2,000 units at a cost of RM360 per unit as per the details listed below: RM Materials 200 Labour 60 Factory Overheads 60 (RM24 fixed) Administrative Overheads 40 (RM20 fixed) The current selling price is RM400 per unit. Additional information: 1) At 70% working capacity, material cost per unit increased by 3% and selling price per unit reduced by 3%. 2) At 90% working capacity, material cost per unit increased by 6% and selling price per unit decreased by 6%. Required: a) Estimate the profit of the factory at 70% and 90% of working capacity. (18 marks)
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