ABC factory produces 24,000 units. The cost sheet gives the following information: Direct Materials Rs. 1,20,000 Direct Labour Rs. 84,000 Variable overheads Rs. 48,000 Semi
ABC factory produces 24,000 units. The cost sheet gives the following information: Direct Materials Rs. 1,20,000
Direct Labour Rs. 84,000
Variable overheads Rs. 48,000
Semi variable overheads Rs. 28,000
Fixed overheads Rs. 80,000
Total Cost Rs. 3,60,000
Presently the product is sold at Rs. 20 per unit.
The management proposes to increase the production by 3,000 units for sales in the foreign market. It is estimated that semi-variable overheads will increase by Rs. 1,000. But the product will be sold at Rs. 14 per unit in the foreign market. However, no additional capital expenditure will be incurred
Q-1. What is a present profit of the company?
Q-2. What is the proposed profit of the company in a new market?
Q-3.What is a suggestion for new market proposal whether proposal accept or not
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To answer these questions we will calculate the present profit and then evaluate the proposed profit if production is increased for the new market Fin... View full answer
Get step-by-step solutions from verified subject matter experts
100% Satisfaction Guaranteed-or Get a Refund!
Step: 2Unlock detailed examples and clear explanations to master concepts
Step: 3Unlock to practice, ask and learn with real-world examples
See step-by-step solutions with expert insights and AI powered tools for academic success
-
Access 30 Million+ textbook solutions.
-
Ask unlimited questions from AI Tutors.
-
Order free textbooks.
-
100% Satisfaction Guaranteed-or Get a Refund!
Claim Your Hoodie Now!
Authors: Heintz and Parry
20th Edition
1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192
Study Smart with AI Flashcards
Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge
Explore Flashcards
