6. Unique Cements Ltd. has a cement plant with an annual capacity of 10 lakh tones....

 

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6. Unique Cements Ltd. has a cement plant with an annual capacity of 10 lakh tones. The estimates of the cost budgeted for 2011 - 2012 are: Variable Costs Manufacturing Packing (bags) Marketing Costs (Rs. Lakh ) The estimates of the fixed cost for the year are as under Manufacturing fixed costs Depreciation Marketing fixed costs Capacity utilization level (%) Rs. Per tonne 80 90 280 100 30 100 80 % 300 400 250 Capacity Utilisation 90 % 330 400 270 The sales realization per tonne of cement likely to be achieved for various capacity utilization. levels is: 630 620 610 level 100 % 350 400 300 Price realization per tonne (Rs.) Prepare a statement showing the expected results at various levels of capacity utilization given above. What would be the profits at different capacity utilization given above, if packing costs increase by 10%? 6. Unique Cements Ltd. has a cement plant with an annual capacity of 10 lakh tones. The estimates of the cost budgeted for 2011 - 2012 are: Variable Costs Manufacturing Packing (bags) Marketing Costs (Rs. Lakh ) The estimates of the fixed cost for the year are as under Manufacturing fixed costs Depreciation Marketing fixed costs Capacity utilization level (%) Rs. Per tonne 80 90 280 100 30 100 80 % 300 400 250 Capacity Utilisation 90 % 330 400 270 The sales realization per tonne of cement likely to be achieved for various capacity utilization. levels is: 630 620 610 level 100 % 350 400 300 Price realization per tonne (Rs.) Prepare a statement showing the expected results at various levels of capacity utilization given above. What would be the profits at different capacity utilization given above, if packing costs increase by 10%?

Answer rating: 100% (QA)

To prepare a statement showing the expected results at various levels of capacity utilization we first need to calculate the total costs at each level of capacity including both variable and fixed cos... View the full answer