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please provide the answers for the both questions 01. Alpha group has two companies: K Ltd, which is operating at just above 50% capacity, and

please provide the answers for the both questions image text in transcribed
01. Alpha group has two companies: K Ltd, which is operating at just above 50% capacity, and L Ltd, which is operating at full capacity (7,000 production hours). L Ltd produces two products, X and Y, using the same labour force for each product. For the next year its budget capacity involves a commitment to the sale of 3,000kgs of Y, the remainder of its capacity being used on X. Direct costs of these two products are: Direct wages X Y Direct materials 18 14 15(1 production hour) 10 (2/3 production hour) The company's overhead is Rs.126, 000 per annum relating to X and Y in proportion to their direct wages at full capacity, Rs.70,000 of this overhead is variable. LLtd prices its products with a 60% make-up on its total costs. For the coming year, K Ltd wishes to buy from L Ltd 2,000 kgs of product X which it proposes to adopt and sell, as product Z, for Rs.100 per kg. The direct costs of adoption are Rs.15 per kg.KLtd's total fixed costs will not change but variable overhead of Rs.2 per kg will be incurred. You are required to recommend, as group management accountant, a. At what range of transfer prices, if at all, 2,000 kgs of X should be sold to K Ltd, b. What other points should be bome in mind when making any recommendations about transfer prices in the above circumstances. 02. Star company is manufacturing and selling three model of electronic toys called model P, model Q and model R with the following expected sales for 2018. Model P Model Q Model R Total Unit sold 10.000 15,000 25,000 50,000 Ratio 20% 30% 50% 100% Taking the total fixed costs for the year as Rs.200,000 and other details as below, calculate the breakeven point in units: Rs. Rs. Rs. Sales price 50 25 10 Variable costs 30 15 08 20 Contribution margin 10 02 Calculate breakeven point in units

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