ABC Ltd. manufactures readymade clothes. It sell 300 pieces in foreign market at the price of Rs. 900 per piece and 700 pieces in local market at a price of Rs. 450 per garment. The cost of manufacture of a garment is Rs 320 per piece.
Q 1- Using data tables, examine the profitability big the cost of manufacture is 300, 320, 350, 380.
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Answer:
265000
Explanation:
We are to calculate the profit on selling clothes.
Cost of producing one unit is 320
Total number of clothes sold = 300 + 700 = 1000
Overall cost of production = 320 * 1000 = 320,000
Now let us calculate the earning generated;
Earning from foreign market = 300 * 900 = 270,000
Earning from local market = 700 * 450 = 315,000 = 585,000
Overall profit = 585000 - 320000 = 265,000
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