Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retail Industry IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304114783, 978-1304114785

More Books

Students also viewed these Accounting questions