GINGER and HONEY Ltd. manufactures a product, currently utilising 50% capacity with a turnover of 72,00,000...

 

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GINGER and HONEY Ltd. manufactures a product, currently utilising 50% capacity with a turnover of 72,00,000 at 400 per unit and its P/V Ratio is 40%. The cost data is an under: Direct Material per unit. Direct Wages per unit Variable Overheads per unit Semi-Variable Overheads (which will increase by 91,200 for every 18% increase in capacity or any part thereof) Fixed Overheads 120 80 32 3,84,000 9,60,000 Required: (i) Calculate the Total Fixed Cost at 50% capacity level. (ii) Calculate the Number of units to be sold to earn profit of 112 per unit. (iii) Calculate the Selling Price per unit to earn a profit of 25% on capital employed at 80% activity level. The fixed portion of capital employed is *215,42,400 and the Working Capital portion is 20% of Sales. 2+2+4=8 GINGER and HONEY Ltd. manufactures a product, currently utilising 50% capacity with a turnover of 72,00,000 at 400 per unit and its P/V Ratio is 40%. The cost data is an under: Direct Material per unit. Direct Wages per unit Variable Overheads per unit Semi-Variable Overheads (which will increase by 91,200 for every 18% increase in capacity or any part thereof) Fixed Overheads 120 80 32 3,84,000 9,60,000 Required: (i) Calculate the Total Fixed Cost at 50% capacity level. (ii) Calculate the Number of units to be sold to earn profit of 112 per unit. (iii) Calculate the Selling Price per unit to earn a profit of 25% on capital employed at 80% activity level. The fixed portion of capital employed is *215,42,400 and the Working Capital portion is 20% of Sales. 2+2+4=8

Answer rating: 100% (QA)

i Total Fixed Cost at 50 capacity level Fixed Overheads 960000 ii Number of units to be sold to earn ... View the full answer