Question

Question 3
The total capital investment in setting up a production unit is Rs. 15 lakhs and the production unit produces 3 million kg of product annually. Selling price of
product is 9 per kg. Manufacturing cost include raw material at the rate Rs.0.8 per kg, labour at the rate 1.2 per ko, packing at the rate of 0.6 per kg and
utilities at the rate of 0.8 per kg. General expenses comes out to be 15% of manufacturing cost. If taxes are considered as 33% of gross annual earnings,
determine the net profit of the production unit per year?​

Answer 1

Answer:

സ്‌ഷാസംഭശ്ശ്വസിഗ്സൈസ്ഗ്ഗവ്സവ്സഗ്ഗഡ്‌ഡിഗ്ഗ്

Answer 2

Solution :-

given that, Manufacturing cost includes ,

• raw material at the rate Rs.0.8 per kg .
• labour at the rate 1.2 per kg .
• packing at the rate of 0.6 per kg .
• utilities at the rate of 0.8 per kg.

so,

→ Total Manufacturing cost per kg = 0.8 + 1.2 + 0.6 + 0.8 = Rs.3.4

then,

→ General expenses = 15% of Manufacturing cost per kg = (15 * 3.4)/100 = Rs.0.51 / kg .

so,

→ Total cost = 3.4 + 0.51 = Rs.3.91/kg .

now, given that,

→ SP = Rs.9 / kg .

→ CP = Rs.3.91 / kg.

then,

→ profit = 9 - 3.91 = Rs.5.09 / kg .

now, given that,

• The production unit produces 3 million kg of product annually.

so,

→ Total profit = 3 million * 5.09 = 3000000 * 5.09 = Rs. 15270000 ≈ 1.5 crore .

now,

→ Tax paid = 33% of gross annual earnings = 33% of 1.5 crore = (33 * 1.5 C) / 100 = 49.5 lakhs .

therefore,

→ The net profit of the production unit per year = 1.5 crore - 49.5 lakh = 1.005 crore (Ans.)

Learn more :-

Christina purchased some articles for $2400. She sold two-third of the articles purchased at 10% loss. Find the profit p...

https://brainly.in/question/39275446

A person sells his table at a profit of 12.5% and his chair at a loss of 8.33% but on the whole he changed rs 12 on the ...

https://brainly.in/question/38842080