(b) XYZ Auto Ltd. is in the business of selling cars. It also sells insurance and...
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(b) XYZ Auto Ltd. is in the business of selling cars. It also sells insurance and finance as part of its overall business strategy. The following information is available for the company. Physical Units 10,000 Cars Sales Value *30,000 lacs 6,000 Policies 1,500 lacs * 19,200 lacs 8,000 Loans Sales of Cars Sales of Insurance Sales of Finance The Revenue earnings from each line of business before expenses are as follows: 3% of Sales value 20% of Sales value 2% of Sales value Sale of Cars Sale of Insurance Sale of Finance The expenses of the company are as follows: Salesman salaries Rent Electricity Advertising Documentation cost per insurance policy Documentation cost for each loan Direct sales expenses per car Indirect costs have to be allocated Required: the ratio of physical units sold. *200 lacs * 100 lacs *100 lacs *200 lacs *100 * 200 *5,000 (i) Make a cost sheet for each product allocating the direct and indirect costs and also showing the product wise profit and total profit. (ii) Calculate the percentage of profit to revenue earned from each line of business. (b) XYZ Auto Ltd. is in the business of selling cars. It also sells insurance and finance as part of its overall business strategy. The following information is available for the company. Physical Units 10,000 Cars Sales Value *30,000 lacs 6,000 Policies 1,500 lacs * 19,200 lacs 8,000 Loans Sales of Cars Sales of Insurance Sales of Finance The Revenue earnings from each line of business before expenses are as follows: 3% of Sales value 20% of Sales value 2% of Sales value Sale of Cars Sale of Insurance Sale of Finance The expenses of the company are as follows: Salesman salaries Rent Electricity Advertising Documentation cost per insurance policy Documentation cost for each loan Direct sales expenses per car Indirect costs have to be allocated Required: the ratio of physical units sold. *200 lacs * 100 lacs *100 lacs *200 lacs *100 * 200 *5,000 (i) Make a cost sheet for each product allocating the direct and indirect costs and also showing the product wise profit and total profit. (ii) Calculate the percentage of profit to revenue earned from each line of business.
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i Cost Sheet for each product Product Cars Sales Value 30000 lacs Direct Costs Direct sales expenses ... View the full answer
Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
Posted Date:
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