Fancy Bag company purchases Ladies Bags from a wholesaler @ Rs 1100/- per piece. They add accessories
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Question:
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 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
Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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