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Q1. XYZ Ltd manufactures a single product, with the following data: (10 marks) Rs. Sales (40,000 units) 600,000 Production costs (40,000 units)- Fixed 120,000 Variable

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Q1. XYZ Ltd manufactures a single product, with the following data: (10 marks) Rs. Sales (40,000 units) 600,000 Production costs (40,000 units)- Fixed 120,000 Variable 240,000 Selling and Distribution Expenses - Fixed 18,000 Variable @ 12% of Sales 72,000 Maximum capacity 50,000 units 1. The company received an offer from Italy, to export 8000 units, through a commission agent, who expects a commission of Rs.1.20, p.u. What should be the minimum price to be quoted, to earn a profit of Rs.8000, on the export order. 2. What should be the minimum price p.u.to be quoted, if the offer size had been 15,000 units instead of 8000 units

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