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Figures regarding sales, cost and profit at 50% capacity are given as follows: sales $2000000, Direct cost $800000, factory over head $400000, office overhead $200000,

Figures regarding sales, cost and profit at 50% capacity are given as follows: sales $2000000, Direct cost $800000, factory over head $400000, office overhead $200000, selling overhead $300000 and profit $300000. Every 10% increase in sales be beyond 50% capacity is possible only after reducing the price by 1% on the base level of 50%. Direct material cost is 25% of the total direct cost at 50% capacity. with every 10% increase in capacity above this level, the price of the direct material comes down by 2%. 50% of the factory overhead are fixed and the rest are fully variable. office overheads are of step character. Every 10% increase in output results in 2% increase in office overhead over 50% capacity. selling overheads increase in proportion of sales value.

  1. The direct material cost at 80% capacity is
  2. The fixed office overhead at 80%capacity
  3. The sales figure at 80% capacity
  4. The other direct cost apart from direct material cost at 80% capacity
  5. The profit at 80% capacity
  6. The total variable cost at 80% capacity
  7. The variable selling overheads at 80% capacity

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