Fancy Bag company purchases Ladies Bags from a wholesaler @ Rs 1100/- per piece. They add accessories and packaging and sell each bag for Rs 1800/- per piece. They incur certain fixed expenses. The company wants to understand how many pieces they must sell in order to be profitable. They seek the help of a Management accountant to:

a. Ascertain Contribution per piece and as a % of Sales Price

b. Prepare the Profit / Loss account for the sale of 200 pieces 300 pieces

Details provided:

Purchase Cost	1100	per pc
Sale	1800	per pc

Expenses	Per Month
Rent	50000
Staff Salary	75000
Commission per pc	100

 

Answer rating: 100% (QA)

a Ascertain Contribution per piece and as a of Sale... View the full answer