Question: please answer as soon as possible need to submit this within one hour. Discuss the use of the principles of marginal costing in the process
please answer as soon as possible need to submit this within one hour.
Discuss the use of the principles of marginal costing in the process of decision making for the following case: A company has an installed capacity of 100000 units and is currently working at 70% capacity utilisation. As the capacity utilisation increases, the cost per unit unit reduces as follows- Capacity utilisation% Cost per unit-Rs. 70 107 80 102 90 97 100 92 The company has received three export orders from different sources as under: A 5000 units at Rs. 65/- per unit B 10000 units at Rs. 62/- per unit C 10000 units at Rs. 61- per unit Advise the company whether any of the export orders may be accepted or not.
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