Answered step by step
Verified Expert Solution
Question
1 Approved Answer
VWX Paper Ltd. has a production capacity of 300,000 units per month. Below is the cost data for different activity levels: Particulars of Costs 100,000
VWX Paper Ltd. has a production capacity of 300,000 units per month. Below is the cost data for different activity levels:
Particulars of Costs | 100,000 units | 200,000 units | 300,000 units |
Direct Material | ₹15,00,000 | ₹30,00,000 | ₹45,00,000 |
Direct Labour | ₹12,00,000 | ₹24,00,000 | ₹36,00,000 |
Total Factory Overheads | ₹18,00,000 | ₹36,00,000 | ₹54,00,000 |
You are required to calculate:
- The total cost at an activity level of 250,000 units.
- The cost per unit at this activity level.
- The selling price per unit if a profit margin of 25% on cost is desired.
- The contribution margin per unit if the selling price per unit is ₹60.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started