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j4 15 P.11.3 A manufacturing concem sells its sale product in three sizes of packages-small, medium, and large each package containing one, two and three
j4 15 P.11.3 A manufacturing concem sells its sale product in three sizes of packages-small, medium, and large each package containing one, two and three dozen units of the product respectively. Sales for the year were: Number of packages sold Sales rate Small size 20,000 10 Medium size 5,00,000 Large size 5,00,000 20 The factory cost was 30 paise per unit of product and the administration overhead was added at 2% of sales. The following selling and distribution expenses were incurred: Advertising Small 30,000 Medium 6,00,000 Large 15,00,000 Packages: Small 5,000 Medium 5,00,000 Large 5,00,000 General advertising (as % of sales) Commission (as % of sales) 10 Sales office expenses (as % of sales) 2 Travelling expenses: Small 1,000 Medium 80,000 Large 30,000 Prepare a comparative income statement for each size of package. 1
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