Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve both or skip Illustration 6: Calculate: The amount of fixed expenses The number of units to break-even The number of units to earn a

image text in transcribed

image text in transcribed

solve both or skip

Illustration 6: Calculate: The amount of fixed expenses The number of units to break-even The number of units to earn a profit of rs.40,000 The selling price can be assumed as rs.10. The company sold in two successive periods 9,000 units and 7,000 units and has incurred a loss of rs.10,000 and earned rs. 10,000 as profit respectively. Illustration 5: 10 A factory engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per annum: Rs. Material Labour cost 3 Overheads 5 (60% fixed) The selling price is rs.20 per bucket. If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity the selling price falls by 5%, accompanied by a similar fall in the prices of material. You are required to calculate the profit at 50% and 90% capacities and also the break-even points for the same capacity productions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Cataldo Cpa II, Cma Cgma A J

2nd Edition

1634929241, 978-1634929240

More Books

Students also viewed these Accounting questions