Subject :- Cost and Management Accounting (Mgt402)

Question

Topics to be covered Cost Volume Profit Analysis . Budgeting Assignment Question ESY a manufacturing concern and sell its "product A" to northern region of country. Information related to product sales price and costs is as follows: Particulars Rs (per unit) Sales price 1,500 Direct material 418 Direct labor 200 Other variable overhead 52 Fixed overhead 67 Requirement: 1. Compute contribution margin per unit and also discuss how it depicts satisfactory condition in given scenario. 2. Company management decides to expand its operation by selling its product to Eastern region of the country from the next quarter of the year. In this regard, how sales and production estimates (budgets) would be important to prepare master budget so that management may take decision whether to expand its operation. Explain your answer with suitable example(s)