A company's flexible budget reveals the following market conditions and costs: Output in Total semi fixed...
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A company's flexible budget reveals the following market conditions and costs: Output in Total semi fixed units cost (Rs) 60,000 1,20,000 1,80,000 2,40,000 3,00,000 3,60,000 12 Selling price per unit (Rs) 10 9 8 7 1,50,000 1,50,000 1,70,000 1,70,000 2,00,000 2,00,000 Total variable cost (Rs) 4,18,000 8,18,000 12,78,000 15,78,000 17,78,000 19,02,000 Total fixed cost (Rs) 1,42,000 1,42,000 1,42,000 1,42,000 1,42,000 1,42,000 a) Prepare a schedule showing the total Differential Cost and Incremental Revenue, b) At what level, should the company set its level of production? c) What selling price should be established in order to obtain the most profitable operations for the years? A company's flexible budget reveals the following market conditions and costs: Output in Total semi fixed units cost (Rs) 60,000 1,20,000 1,80,000 2,40,000 3,00,000 3,60,000 12 Selling price per unit (Rs) 10 9 8 7 1,50,000 1,50,000 1,70,000 1,70,000 2,00,000 2,00,000 Total variable cost (Rs) 4,18,000 8,18,000 12,78,000 15,78,000 17,78,000 19,02,000 Total fixed cost (Rs) 1,42,000 1,42,000 1,42,000 1,42,000 1,42,000 1,42,000 a) Prepare a schedule showing the total Differential Cost and Incremental Revenue, b) At what level, should the company set its level of production? c) What selling price should be established in order to obtain the most profitable operations for the years?
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