13. R Ltd. will produce 3,00,000 kgs. of X and 6,00,000 kgs. of Y from an input of 9,00,000 kgs. of a raw material Z. The selling price of X is 78 per kg. and that of Y is 6 per kg. Following additional information is available: Processing cost amount to 54,00,000 per month as under; Raw material Z,9,00,000 kgs. at 3 per kg. Variable Processing Cost Fixed Processing Cost Ž 27,00,000 * 18,00,000 9,00,000 Total Cost 54,00,000 There is an offer to purchase 60,000 kgs. additionally at a price of 4 per kg. The existing market for Y will not be affected by accepting the offer. But the price of X is likely to be decreased uniformly on all sales. Find the minimum reduced average price for X, to sustain the increased sales.

13. R Ltd. will produce 3,00,000 kgs. of X and 6,00,000 kgs. of Y from an input of 9,00,000 kgs. of a raw material Z. The selling price of X is 78 per kg. and that of Y is 6 per kg. Following additional information is available: Processing cost amount to 54,00,000 per month as under; Raw material Z,9,00,000 kgs. at 3 per kg. Variable Processing Cost Fixed Processing Cost Ž 27,00,000 * 18,00,000 9,00,000 Total Cost 54,00,000 There is an offer to purchase 60,000 kgs. additionally at a price of 4 per kg. The existing market for Y will not be affected by accepting the offer. But the price of X is likely to be decreased uniformly on all sales. Find the minimum reduced average price for X, to sustain the increased sales.

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Description: 13. R Ltd. will produce 3,00,000 kgs. of X and 6,00,000 kgs. of Y from an input of9,00,000 kgs. of a raw material Z. The selling price of X is 78 per kg. and that of Y is6 per kg. Following additional information is available:Processing cost amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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