Answered step by step
Verified Expert Solution
Question
1 Approved Answer
NO HAND WRITTEN OR SCREENSHOT NEED IN TYPED OR TABLE FORMAT b) (08 marks) Paste Corporation has established new plant for the production of new
NO HAND WRITTEN OR SCREENSHOT
NEED IN TYPED OR TABLE FORMAT
b) (08 marks) Paste Corporation has established new plant for the production of new product called Diazinon. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following: Process base Order base Variable manufacturing cost per unit. Rs14.00 Rs.17.60 Fixed manufacturing cost per year .Rs. 2,440,000 Rs. 1,320,000 The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for Diazinon. The yearly fixed selling and admin costs of the Diazinon are Rs.500, 000. The variable selling and regulatory costs are Rs. 2 per unit. Required: I. II. CM ratio and variable expenses ratio. If Paste Corporation uses the: 1. Process base manufacturing method. 2. Order base manufacturing method. Break-even point in units and amount by formula method. If Paste Corporation uses the: 1. Process base manufacturing method. 2. Order base manufacturing method. Margin of safety. Assuming 250,000 units are actual sales for. 1. Process base manufacturing method. 2. Order base manufacturing method. Degree or operating leverage at actual sales level for. 1. Process base manufacturing method. 2. Order base manufacturing method. III. IVStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started