Ans in 5 mins

TA Ltd. operating at 60% level of activity furnishes the following information for the month of December 2000. An exporter offers to buy 8,000 units per month at the rate of Rs.48 per unit but TA Ltd. hesitates to accept the offer for fear of increasing its already large operating losses. Advise the management of the company whether or not to accept the order. Cost of production Cost per unit Rs. 18 Direct Materials Direct Labor Rs.14 Rs. 12 Variable OH Fixed Oh Rs. 11 Total cost Rs.55 Production per month 12000 units Total cost of production Rs. 660000 Sales Value Rs. 600000 Loss Rs. 60000 CS Scanned with CamScanner