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Q.1. Anas Company engaged in manufacturing plastic products is working at 60% capacity and produces 5,400 units per month. The present cost breaks up for

Q.1. Anas Company engaged in manufacturing plastic products is working at 60% capacity and produces 5,400 units per month.

The present cost breaks up for one unit is as under:

Material SR 8; Labor- SR 2; Overhead-SR 6 (25% fixed)

The selling price is SR 25 per unit. If it is desired to work the company at 70% capacity the selling price falls by 4%. At 80% capacity the selling price increase by 2%.

You are required to prepare a statement showing the profit at 60%, 70% and 80% capacity.

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