The Everest Snow Company manufactures and sells direct to customers 10,000 jars of ‘Everest Snow’ per month at Rs. 1.25 per jar. The company’s normal production capacity is 20,000 jars and snow per month. Analysis is of cost for 10,000 jars show: Direct Material. Rs. 1,000 Direct Labour Rs. 2,475 Power Rs. 140 Misc. Expense Rs. 430 Jars Rs. 600 Fixed expenses of manufacturing, Selling and administration Rs. 7,955 Total Rs. 12,600 The company has received an offer for export under a different brand name of 10,000 jars per month at 75 paise a jar. Write a short note on the advisability of accepting the offer ?
The Everest Snow Company manufactures and sells direct to customers 10,000 jars of ‘Everest Snow’ per month at Rs. 1.25 per jar. The company’s normal production capacity is 20,000 jars and snow per month. Analysis is of cost for 10,000 jars show: Direct Material. Rs. 1,000 Direct Labour Rs. 2,475 Power Rs. 140 Misc. Expense Rs. 430 Jars Rs. 600 Fixed expenses of manufacturing, Selling and administration Rs. 7,955 Total Rs. 12,600 The company has received an offer for export under a different brand name of 10,000 jars per month at 75 paise a jar. Write a short note on the advisability of accepting the offer ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
66. The Everest Snow Company manufactures and sells direct to customers 10,000 jars of ‘Everest Snow’ per month at Rs. 1.25 per jar. The company’s normal production capacity is 20,000 jars and snow per month. Analysis is of cost for 10,000 jars show:
Direct Material. Rs. 1,000
Direct Labour Rs. 2,475
Power Rs. 140
Misc. Expense Rs. 430
Jars Rs. 600
Fixed expenses of manufacturing, Selling and administration Rs. 7,955
Total Rs. 12,600
The company has received an offer for export under a different brand name of 10,000 jars per month at 75 paise a jar. Write a short note on the advisability of accepting the offer ?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education