ABC factory produces 24,000 units. The cost sheet gives the following information:
Direct Materials Rs. 1,20,000
Direct Labour Rs. 84,000
Variable overheads Rs. 48,000
Semi variable overheads Rs. 28,000
Fixed overheads Rs. 80,000
Total Cost Rs. 3,60,000
Presently the product is sold at Rs. 20 per unit.
The management proposes to increase the production by 3,000 units for sales in the foreign market . It is estimated that semi variable overheads will increase by Rs. 1,000. But the product will be sold at Rs. 14 per unit in the foreign market. However, no additional capital expenditure will be incurred
akashnagarkumar:
What is present profit of the company ?
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616464646116752466876194
what a question bro?
Are you sure this is the answer ? because its not clear
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"The company produces 24000 units and sells at Rs. 20 per unit that 24000* 20= 480000
The Total cost of production is 360000 for 24000 units
The company increases the production of 3000 units which is sold in foreign markets @ Rs. 14 per unit that is 3000*14=42000 with just meagre etc. expense of 1000 in semi variable
Therefore total earning that’s is 480000+42000=522000
Profit= 522000-361000=161000
Profit earned =161000
"
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