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XYZ Manufacturing Inc. has a maximum production capacity of 50,000 units per month. Below is the cost data for different activity levels: Particulars of Costs
XYZ Manufacturing Inc. has a maximum production capacity of 50,000 units per month. Below is the cost data for different activity levels:
Particulars of Costs | 30,000 units | 40,000 units | 50,000 units |
Direct Material | ₹18,00,000 | ₹24,00,000 | ₹30,00,000 |
Direct Labour | ₹22,50,000 | ₹30,00,000 | ₹37,50,000 |
Total Factory Overheads | ₹30,00,000 | ₹40,00,000 | ₹50,00,000 |
You are required to calculate:
- The total cost at an activity level of 45,000 units.
- The cost per unit at this activity level.
- The selling price per unit if a profit margin of 20% on cost is desired.
- The breakeven point in units if the fixed overheads are ₹10,00,000 per month and the variable cost per unit is constant.
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