Question
NOP Packaging Ltd. has provided the following cost data for different levels of production: Particulars of Costs 10,000 units 20,000 units 30,000 units Direct Material
NOP Packaging Ltd. has provided the following cost data for different levels of production:
Particulars of Costs | 10,000 units | 20,000 units | 30,000 units |
Direct Material | ₹5,00,000 | ₹10,00,000 | ₹15,00,000 |
Direct Labour | ₹4,00,000 | ₹8,00,000 | ₹12,00,000 |
Total Factory Overheads | ₹6,00,000 | ₹12,00,000 | ₹18,00,000 |
You are required to calculate:
- The total cost at an activity level of 25,000 units.
- The cost per unit at this activity level.
- The selling price per unit if a profit margin of 20% on cost is desired.
- The breakeven point in units if the fixed overheads are ₹5,00,000 per month.
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
