Tractors Ltd. have an installed capacity of 5000 tractors per annum. They are presently operating at about
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Tractors Ltd. have an installed capacity of 5000 tractors per annum. They are presently operating at about 35% of installed capacity. For the coming year, they have budgeted as follows:
Factory expenses as well as selling expenses are variable to the extent of 20%.
Calculate the break-even capacity utilisation percentage.
Transcribed Image Text:
Production/Sales Costs Direct materials Direct wages Factory expenses Administrative expenses Selling expenses Profit 4000 units Rs. (Crore) 8.00 0.60 0.80 0.20 0.20 1.00
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To calculate the breakeven capacity utilization percentage for Tractors Ltd well first determine the total fixed costs and then use them to find the b...View the full answer
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