X Ltd. manufactures four brands of toys-A, B, C and D. If the company limits the manufacture
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X Ltd. manufactures four brands of toys-A, B, C and D. If the company limits the manufacture to just one brand, the monthly production will be:
A - 50000 units
B - 100000 units
C - 150000 units
D - 300000 units
You are given the following set of information from which you are requested to find out the profit or loss made on each brand showing clearly the following elements-
(a) Direct Cost
(b) Works Cost
(c) Total Cost
Factory overhead expenditure for the month was Rs. 162000. Selling and distribution cost should be assumed @ 20% of works cost. Factory overhead expenses should be allocated to each brand on the basis of units which could have been produced in a month when single brand production was in operation.
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The relative ratios of each brand of products are as follows 1 Unit of A 2 units of B 3 units of ...View the full answer
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