A company produces X, Y and Z from a raw material M. For every 100 tonnes of M put into production it obtains 50 tons of product X, 30 tons of Y and 15 tons of Z, while 5 tons goes as waste. The selling price of X, Y and Z is Rs. 40. Rs, 60 and Rs. 80 per ton. The cost of raw material M is Rs. 20 and variable processing costs are Rs. 10., Variable marketing costs are budgeted to be at the rate of 10 percent of sales value. Budgeted fixed overheads per annum are: Manufacturing - Rs. 40,000, Marketing - Rs. 30,000, and Administration - Rs. 20,000. The company intends to process 10,000 tonnes of material M in the coming year. Question 21:- Fixed Cost is Rs. a) 75000 b) 60000 90000 d) O 55000 Question 22:- Contribution is Rs. 12 per unit b 15 per unit C) 16 per unit 18 per unit Question 23:- Net Profit is Rs. a) 24000 260000 280000 300000 Question 24:- Break Even Point is Rs. 300000 b. 350000 250000 275000

A company produces X, Y and Z from a raw material M. For every 100 tonnes of M put into production it obtains 50 tons of product X, 30 tons of Y and 15 tons of Z, while 5 tons goes as waste. The selling price of X, Y and Z is Rs. 40. Rs, 60 and Rs. 80 per ton. The cost of raw material M is Rs. 20 and variable processing costs are Rs. 10., Variable marketing costs are budgeted to be at the rate of 10 percent of sales value. Budgeted fixed overheads per annum are: Manufacturing - Rs. 40,000, Marketing - Rs. 30,000, and Administration - Rs. 20,000. The company intends to process 10,000 tonnes of material M in the coming year. Question 21:- Fixed Cost is Rs. a) 75000 b) 60000 90000 d) O 55000 Question 22:- Contribution is Rs. 12 per unit b 15 per unit C) 16 per unit 18 per unit Question 23:- Net Profit is Rs. a) 24000 260000 280000 300000 Question 24:- Break Even Point is Rs. 300000 b. 350000 250000 275000

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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