4. Mahindra and Mahindra Ltd is in dilemma regarding their operation due to new variants of...

 

Transcribed Image Text:

4. Mahindra and Mahindra Ltd is in dilemma regarding their operation due to new variants of Covid. Since the management do not know whether India will be under complete or partial lockdown, they want to keep all their employees on roll. The Chief Finance Executive is asking you to prepare the budget for next quarter with the conditions given below. Conditions: i. Quarter-2 No. of units 133000 Quarter-2 sales revenue is generated by using 75% of the capacity. Cost of materials consumed will increase by 10% in the coming quarter As promised in the last lockdown, the management is going to fulfill the 15% increase in Employee benefits in the coming quarter Use the Quarter 2 (2021) Income statement (standalone) of Mahindra and Mahindra Ltd and prepare the Flexible budget till "Profit before exceptional items and tax” for 50%, 60%, 65% and 70% of the capacity (10 Marks) - CLOS 4. Mahindra and Mahindra Ltd is in dilemma regarding their operation due to new variants of Covid. Since the management do not know whether India will be under complete or partial lockdown, they want to keep all their employees on roll. The Chief Finance Executive is asking you to prepare the budget for next quarter with the conditions given below. Conditions: i. Quarter-2 No. of units 133000 Quarter-2 sales revenue is generated by using 75% of the capacity. Cost of materials consumed will increase by 10% in the coming quarter As promised in the last lockdown, the management is going to fulfill the 15% increase in Employee benefits in the coming quarter Use the Quarter 2 (2021) Income statement (standalone) of Mahindra and Mahindra Ltd and prepare the Flexible budget till "Profit before exceptional items and tax” for 50%, 60%, 65% and 70% of the capacity (10 Marks) - CLOS

Answer rating: 100% (QA)

Budget for Quarter 2 2021 at 50 Capacity Sales Revenue Rs 133000075050 Rs 496250 Cost of Mater... View the full answer