XYZ. Ltd. Is currently working at 50oA capacity and produces 10,000 units. At 60% capacity raw material cost increased by 2% and selling price falls by 2 percent. At 80% capacity raw material cost increased by 5% and selling price falls by 5%. At 50% capacity the product costs Rs. 180 per unit and is sold at Rs. 200 per unit. The UIIIL itcost UUSof U Rs. 1 80 comprises the following P”.ti””1″t SgS g Rs. Material 100 Wages 30 Factory overheads 30 (40% fixed) Admini strative Overheads 20 (50% fixed) Prepare a marginal cost statement showing the estimated profit of the business when it is operating at60Yo and 80% ofcapacity

To prepare a marginal cost statement and estimate the profit of the business when operating at 60% and 80% of …

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