Question
Lindale Inc. manufactures and sales a specialize product which is a fundamental to fix before a lockers locks and its doors. The breakeven of the
Lindale Inc. manufactures and sales a specialize product which is a fundamental to fix before a lockers locks and its doors. The breakeven of the said product manages while hitting a sales of is Rs. 1000,000 by selling total units of 37,500. The price of this specialize lock is set by the management of the company based on the recommendation of management accountant who suggest the price at 29%. The manufacturing cost is composed of factory overhead of Rs. 175,000 for producing 20,000 locks and Rs. 131,250 for producing 15,000 locks. Required. 1. Fixed cost and variable cost of producing a lock. 2. Contribution margin ratio. 3. Breakeven in units. 4. Suggest price of a lock if the management plans to make desired profit of Rs. 1,500,000 based on the same units at breakeven?
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