Question
The expenses budgeted for production of 1200 units in XYZ Limited are provided below: Administrative expenses [total] $210000 Labour cost/unit $250 Material cost/unit $600 Variable
The expenses budgeted for production of 1200 units in XYZ Limited are provided below: Administrative expenses [total] $210000 Labour cost/unit $250 Material cost/unit $600 Variable overheads $200 Selling expenses/unit $140 - - - Selling price per unit was set to be $1600 and the actual sales were 30% less than budgeted production units which were planned to sell. - - - Selling expenses per unit include 20% of expenses which are fixed for different levels of productions and sales. - - - Administrative expenses are fixed regardless of the variances in productions. and find out Net operating income
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