Question

A factory is currently running at 50% capacity & produces 5000 units at a cost of Rs. 90 per unit as per detail below.
Material Rs. 50
Labour Rs. 15
Factory overhead Rs. 15 (Rs. 6 variable)
Administrative overhead Rs. 10 (Rs. 4 variable)
The current selling price is Rs. 100 per unit. Estimate profit of the factory at 60% & 80% working and offered your comments.

Answer 1

Answer:

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