At present the manufacturing plant of laksiri Ltd is operating at 50% of its capacity. The following details are related to plant. Rs.Variable cost (Per Unit)12Selling Price(Per Unit)14Total Fixed cost45,000Present Production20000 unitsIf an exporter offers to bye 10,000 units per month at the rate of Rs.13 per unit Should Laksiry Ltd. accept this offer? Confirm your answer with requird calculations.

Whether to sell further units on special offer just consider if variable expenses are covered or…

Answered: At present the manufacturing plant of…

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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At present the manufacturing plant of laksiri Ltd is operating at 50% of its capacity. The following details are related to plant.

	Rs.
Variable cost (Per Unit)	12
Selling Price(Per Unit)	14
Total Fixed cost	45,000
Present Production	20000 units

If an exporter offers to bye 10,000 units per month at the rate of Rs.13 per unit Should Laksiry Ltd. accept this offer? Confirm your answer with requird calculations.

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