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I can find the answer for all the parts of this question but not the end part where they are asking to find out the
I can find the answer for all the parts of this question but not the end part where they are asking to find out the net profitability.
Q3. A manufacturing company is producing a product 'A' which is sold in the market at 345 per unit. The company has the capacity to produce 40000 units per year. The budget for theyear 2018-19 projects a sale of 30000 units. The costs of each unit are expected as under: Materials 312 Wages 39 Overheads 26 Margin of safety is 34,12,500. You are required to: (1) Calculate fixed cost and break-even point. (ii) Calculate the volume of sales to earn profit of 20% on sales. (ii) If management is willing to invest $10,00,000 with an expected return of 20%, calculate units to be sold to earn this profit. (iv) Management expects additional sales if the selling price is reduced to 244. Calculate units to be sold to achieve the same profit as desired in above (iii). Also from the following set of information find out the profitability of products and give your comments on the decision of management Q3. A manufacturing company is producing a product 'A' which is sold in the market at 345 per unit. The company has the capacity to produce 40000 units per year. The budget for theyear 2018-19 projects a sale of 30000 units. The costs of each unit are expected as under: Materials 312 Wages 39 Overheads 26 Margin of safety is 34,12,500. You are required to: (1) Calculate fixed cost and break-even point. (ii) Calculate the volume of sales to earn profit of 20% on sales. (ii) If management is willing to invest $10,00,000 with an expected return of 20%, calculate units to be sold to earn this profit. (iv) Management expects additional sales if the selling price is reduced to 244. Calculate units to be sold to achieve the same profit as desired in above (iii). Also from the following set of information find out the profitability of products and give your comments on the decision of management Step by Step Solution
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