You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of goods sold
You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 19A, Starborne Inc. produces a machine for $675 and sells for $1,000. Cost of goods sold comprises of 35% of material, 40% of labour and remaining FOH. During this year, 1000 units have been sold. It is expected that next year, cost of material and labour will go up by 20% and 30% respectively. In order to be competitive, company is increasing the sale price per unit only by 10%, due to which it is expected to increase in volume by 15% also. You are required to prepare
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