Question
Zcbex Ltd. produces a uniform type of article and has a capacity of producing 1,500 units per week of 48 hours. The following information shows
Zcbex Ltd. produces a uniform type of article and has a capacity of producing 1,500 units per week of 48 hours.
The following information shows the different elements of cost for three consecutive weeks of 48 hours each, when the output has changed from week to week:
Units Produced Materials Labour Factory Overhead
400 800 1,600 3,800
500 1,000 2,000 4,000
800 1,600 3,200 4,600
Required:
Determine the selling price per unit when the weekly output will be 1,000 units and a profit of 10% on selling price will have to be made.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To analyze the cost behavior of Zcbex Ltd we need to calculate the variable and fixed cost components of each cost element We can use the highlow method to calculate the variable cost component ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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