Question
CASE NO #02 Apple Corporation is an American multinational computer technology company that develops, sells, repairs, and supports mobiles,computers and related products and services. It
CASE NO #02 Apple Corporation is an American multinational computer technology company that develops, sells, repairs, and supports mobiles,computers and related products and services. It is one of the largest technological corporations in the world. The expenses budgeted for production of 20,000 units computers at 100% capacity level of the factory of the company are furnished below:
Details Unit Cost (OMR)
Material Cost 90
Labor 40
Direct Expenses 22
Work Overhead (30% Fixed) 30
Administrative Expenses (60%Variable) 25
Distribution Expenses - Fixed (120,000) 12
Selling Overhead - Fixed (40,000) 4
Due to the current Covid-19 pandemic situation, the board of directors of Dell Inc. decided to reduce production for the upcoming period. As a Management Accountant of Dell Inc, you are directed to advise the board of directors which is the best profitable level of activity by comparing 60% and 80 % levels of production capacities. Assume that the unit cost of a computer is OMR 250.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started