(i) You are required to determine the cost of producing (i) What would you recommend for an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices ? an additional 1,500 units. [ICWA, Inter.]
(i) You are required to determine the cost of producing (i) What would you recommend for an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices ? an additional 1,500 units. [ICWA, Inter.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![5. A company is at present working at 90% of its capacity and producing 13,500 units per annum.
It operates a flexible budgetary control system. The following figures (excluding material and labour
cost) are obtained from its budget :
90%
100%
(a) Sales
15,00,000
3,00,500
16,00,000
(b) Fixed expenses
(c) Semi-fixed expenses
(d) Variable expenses
Material and labour cost per unit are constant under present conditions. Profit margin is 10% at 90%
3,00,500
1,00,500
1,49,500
97,500
1,42,000
сaрacity.
(i) You are required to determine the cost of producing an additional 1,500 units.
(ii) What would you recommend for an export price for these 1,500 units taking into account that
overseas prices are much lower than indigenous prices ?
[ICWA, Inter.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feaddbede-2347-4cbf-980e-be55092f4fee%2F9fc26eba-a725-44d9-8b99-dc3da72e92ae%2Fekgz9hi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. A company is at present working at 90% of its capacity and producing 13,500 units per annum.
It operates a flexible budgetary control system. The following figures (excluding material and labour
cost) are obtained from its budget :
90%
100%
(a) Sales
15,00,000
3,00,500
16,00,000
(b) Fixed expenses
(c) Semi-fixed expenses
(d) Variable expenses
Material and labour cost per unit are constant under present conditions. Profit margin is 10% at 90%
3,00,500
1,00,500
1,49,500
97,500
1,42,000
сaрacity.
(i) You are required to determine the cost of producing an additional 1,500 units.
(ii) What would you recommend for an export price for these 1,500 units taking into account that
overseas prices are much lower than indigenous prices ?
[ICWA, Inter.]
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