a.Aree Ltd. manufactures three components A, B, and C, the cost of which is as follows: (5) Particulars (Per Unit) A (Rs.) B (Rs.) C (Rs.) Direct materials 10 8 12 Direct labour 8 4 5 Variable overheads 2 4 3 Fixed overheads 5 2 10 Output per machine hours 1 Unit 2 Unit 3 Unit You are to present a report to the management of the company showing whether it should continue to manufacture these components or whether it should buy them from a supplier, who has quoted the following price: A Rs.30; B Rs.15; C Rs.25.
a.Aree Ltd. manufactures three components A, B, and C, the cost of which is as follows: (5) Particulars (Per Unit) A (Rs.) B (Rs.) C (Rs.) Direct materials 10 8 12 Direct labour 8 4 5 Variable overheads 2 4 3 Fixed overheads 5 2 10 Output per machine hours 1 Unit 2 Unit 3 Unit You are to present a report to the management of the company showing whether it should continue to manufacture these components or whether it should buy them from a supplier, who has quoted the following price: A Rs.30; B Rs.15; C Rs.25.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a.Aree Ltd. manufactures three components A, B, and C, the cost of which is as
follows: (5)
Particulars (Per Unit) A (Rs.) B (Rs.) C (Rs.)
Direct materials 10 8 12
Direct labour 8 4 5
Variable
Fixed overheads 5 2 10
Output per machine hours 1 Unit 2 Unit 3 Unit
You are to present a report to the management of the company showing whether it should
continue to manufacture these components or whether it should buy them from a supplier,
who has quoted the following price: A Rs.30; B Rs.15; C Rs.25.
Transcribed Image Text:b My Qu
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b My Qu
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Detail
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W MGMT411 I SEM_MBA.docx
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Q8 a.Aree Ltd. manufactures three components A, B, and C, the cost of which is as
follows:
(5)
Particulars (Per Unit)
A (Rs.)
В (Rs.)
C (Rs.)
Direct materials
10
8
12
Direct labour
8
Variable overheads
4
3
Fixed overheads
2
10
Output per machine hours
1 Unit
2 Unit
3 Unit
You are to present a report to the management of the company showing whether it should
continue to manufacture these components or whether it should buy them from a supplier,
who has quoted the following price: A Rs.30; B Rs.15; C Rs.25.
Page
5 I 6
+
A Accounts_finalPaper.pdf
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1/15/2021
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