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Page Case 2 Dell is an American multinational computer technology company that develops, sells, repairs, and supports computers and related products and services. It is
Page Case 2 Dell is an American multinational computer technology company that develops, sells, repairs, and supports computers and related products and services. It is one of the largest technological corporations in the world. The expenses budgeted for production of 10,000 units computers at 100% capacity level of the factory of the company are furnished below: Unit Cost (OMR) 90 40 Details Material Cost Labor Direct Expenses Work Overhead (30% Fixed) Administrative Expenses (60%Variable) Distribution Expenses. Fixed (120,000) Selling Overhead - Fixed (40,000) 22 30 25 12 4 Due to the current Covid-19 pandemic situation, the board of directors of Dell Inc, decided to reduce production for the upcoming period. As a Management Accountant of Dell Ine, you are directed to advise the board of directors which is the best profitable level of activity by comparing 60% and 80% levels of production capacities. Assume that the unit cost of a computer is OMR 250
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