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You are required to calculare the is (i) heavy demand, and profice of which is Rs 300 per unit. proposes to reduce the selling price
You are required to calculare the is (i) heavy demand, and profice of which is Rs 300 per unit. proposes to reduce the selling price by 20% but desires to maintain the same profit position by increasing the output. Assuming that the increased output could be made and sold, determine the level at which the company should operate to achieve the desired objective. The following data are available: (i) Variable cost per unit is Rs 60 . (ii) Semi variable cost (including a variable element of Rs 10 per unit) is Rs 1,80,000. iii) Fixed cost Rs 3,00,000 will remain constant up to 80% level. Beyond this, an additional amount of Rs 60,000 will be incurred. 5 A comnanv nroducino a single product sells it at Rs 50 per unit. Unit variable cost is R02z 4. Cookwell Ltd manufactures pressure cook with a sales turnover of Rs 18 lakh. The company, Currently the capacity utilization is 60% with a sales to maintain the same profit position by proposes to reduce the selling price by 210 in but desices to main ain the same profit position by increasing the output. Assuming that the increased output could be made and sold, determine the increasing the output, Assuming that the increased output could be made and sold, determine the following data are available: (i) Variable cost per unit is Rs 60. (ii) Semi variable cost (including a variable element of Rs 10 per unit) is Rs 1,80,000. (iii) Fixed cost Rs 3,00,000 will remain constant up to 80% level. Beyond this, an additional amount of Rs 60,000 will be incurred
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