Question
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.
- The direct material cost at 80% capacity is ?
- The fixed office overhead at 80%capacity ?
- The sales figure at 80% capacity ?
- The other direct cost apart from direct material cost at 80% capacity ?
- The profit at 80% capacity ?
- The total variable cost at 80% capacity ?
- The variable selling overheads at 80% capacity ?
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