(a) The following data relates to a manufacturing company: Plant Capacity = 4,00,000 units per annum....
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(a) The following data relates to a manufacturing company: Plant Capacity = 4,00,000 units per annum. Present Utilization = 40% Actual for the year 2014 were: Selling price = 50 per unit, Material cost = 20 per unit, Variable Manufacturing costs = 15 per unit and Fixed cost = 27,00,000. In order to improve capacity utilization, the following proposal is considered: Reduce Selling price by 10% and spend additionally 3,00,000 in Sales Promotion. How many units should be produced and sold in order to increase profit by 8,00,000 per year? 2(b) A retail dealer in garments is currently selling 24,000 shirts annually. He supplies the following details for the year ended 31st March 2017. Selling price per shirt: *800 Variable cost per shirt: *600 Fixed Cost: Staff salaries: *24,00,000 General Office Cost: 8,00,000 Advertising Cost: * 8,00,000 Calculate Break Even Point and margin of safety in sales revenue and number of shirts sold. (a) The following data relates to a manufacturing company: Plant Capacity = 4,00,000 units per annum. Present Utilization = 40% Actual for the year 2014 were: Selling price = 50 per unit, Material cost = 20 per unit, Variable Manufacturing costs = 15 per unit and Fixed cost = 27,00,000. In order to improve capacity utilization, the following proposal is considered: Reduce Selling price by 10% and spend additionally 3,00,000 in Sales Promotion. How many units should be produced and sold in order to increase profit by 8,00,000 per year? 2(b) A retail dealer in garments is currently selling 24,000 shirts annually. He supplies the following details for the year ended 31st March 2017. Selling price per shirt: *800 Variable cost per shirt: *600 Fixed Cost: Staff salaries: *24,00,000 General Office Cost: 8,00,000 Advertising Cost: * 8,00,000 Calculate Break Even Point and margin of safety in sales revenue and number of shirts sold.
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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