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• Discussion topic: Lecture 13 os Volume-Profit Analysis (Cont'd) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles bottle Direct materias Direct labor Variable o erheads Fixed overheads 60,000 20,000 40,000 0.06 0 02 0.04 0.08 0.20 80.000 Total costs 200.000 There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated.

• Discussion topic: Lecture 13 os Volume-Profit Analysis (Cont'd) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles bottle Direct materias Direct labor Variable o erheads Fixed overheads 60,000 20,000 40,000 0.06 0 02 0.04 0.08 0.20 80.000 Total costs 200.000 There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated.

FINANCIAL ACCOUNTING
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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ACC2222 Module Handbook (Part 2) Academic Year 2021-2022 SEMINAR 13 • Discussion topic: Lecture 13 Os Volume-Profit Analysis (Cont d) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles 3. 60,000 20,000 40,000 80.000 200.000 bottle 3. Direct matera s Direct labor Variable o erheads Fixed overheads 0.06 0.02 0.04 0.08 0.20 Total costs There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated. Required- Should Bottle Ltd m or buy the bottles? Substantiate your answers.
Transcribed Image Text:ACC2222 Module Handbook (Part 2) Academic Year 2021-2022 SEMINAR 13 • Discussion topic: Lecture 13 Os Volume-Profit Analysis (Cont d) 1. Bottle Ltd, a bottle manu Te has the following information: - Total cost for Cost per 1,000,000 bottles 3. 60,000 20,000 40,000 80.000 200.000 bottle 3. Direct matera s Direct labor Variable o erheads Fixed overheads 0.06 0.02 0.04 0.08 0.20 Total costs There is another manufacturer offers to sell Bottle Ltd the same bottles for £0.18 per bottle. If Bottle Ltd buys the bottles, £50,000 of fixed overheads would be elimınated. Required- Should Bottle Ltd m or buy the bottles? Substantiate your answers.
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