Question
Salam Ltd Company currently sends out its vehicles for painting to specialist firms. During the last financial year, the number of vehicles painted was 796
Salam Ltd Company currently sends out its vehicles for painting to specialist firms. During the last financial year, the number of vehicles painted was 796 at a cost of 224,472. You are considering the possibility of this work being undertaken by the company in a workshop set up for this purpose. The following information relates to the project:
Rates and maintenance
17,920
Management
21,400
Labour
46,970
Head office costs
25,000
Year 2
25,220
Recoverable
Year 3
10,780
Payable
Year 4
16,180
Payable
Year 5
20,230
Payable
Year 6
23,268
Payable
Year 7
46,049
Payable
The head office costs are a re-allocation of existing overheads.
Required:
Do these indicators suggest that the project should be undertaken? 2- What other considerations should be taken into account by Salam Ltd Company when establishing the new project?
Note: use the following format for the memo:
Memo
Date:
.
To:
.
From:
.
Re:
Property, plant and equipment
A memo has four parts:
To know how to write a business memo, you can make a search on the Internet
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