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Q. 4 A) Venus Corporation produces a single article. Following cost data is given about its Product: - Selling price per unit Rs. 100 Marginal

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Q. 4 A) Venus Corporation produces a single article. Following cost data is given about its Product: - Selling price per unit Rs. 100 Marginal cost per unit Rs.60 Fixed cost per annum Rs.20000 Calculate: (a) P/V ratio (b) break even sales (c) sales to earn a profit of Rs.5,000 (d) Profit at sales of Rs.60,000 (e) New break-even sales, if price is reduced by 10%. (10marks) re13.pdl QA2.pdf Convert and from B) Particulars Beta (Rs.) Gama (Rs.) S.P. 20 30 Variable Cost 14 18 Contribution 6 12 A company has a machine which can produce either product Beta or Gama. The cost data relating to machine Beta and Gama are as follows: Additional Information: a. Capacity of machine is 2, 500 hrs. b. In one hrs machine can produce 4 units of Beta and 1 unit of Gama. Which product should machine to be produced? If Machine Hours is not given, Which Product would be preferred for production and (10marks) why? c) The standard mix to produce 10 unit of product is as follows: Material P 6000units @ Rs.15 per unit 90000 Material Q 8000units @ Rs.21 per unit 168000 Material R 10000units @ Rs.25 per unit 250000 The actual mix to produce 10 unit of product is as follows: Material P 6400units @ Rs.17.5 per unit 112,000 Material Q 9500units @ Rs.18 per unit 17.1000 Material R 8700units @ Rs.27 per unit 234.900 Calculate Material Cost, Material Price, Material Usage, Material Mix Variance? (10 Marks)

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